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> How the scheme works
> Example of how the Feed-in Tariff works
> How to take advantage of the Feed-in Tariffs

Feed-in Tariffs also know as (FITs) became available in the UK on 1st April 2010.

Under this scheme energy suppliers will make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity (PV) panels or wind turbines.

The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.

After you have a micro-generation technology installed you should experience a monthly reduction in your electricity bill and in addition receive an income Feed-in Tariff from your power  provider.

Feed-in Tariffs are set at a level  that  should ensure the average monthly income from your installation will be significantly greater than your monthly loan repayment (with a 25 year loan).

Use the cashback calculator to see how the purchase price and loan can impact on payback times.

 More about the Scheme

The scheme covers the following electricity generating technologies,

• Solar electricity (PV) (roof mounted or stand alone)
• Wind turbine (building mounted or free standing)
• Hydroelectricity
• Anaerobic digestion
• Micro combined heat and power (micro CHP) (limited to a pilot at this stage)

The tariffs available and the process for receiving them vary, depending on when the technology was installed, and whether the system and the installer were certificated under the MCS* scheme. See below for further details

You will qualify for the full FIT payments if:

• The technology was installed between 15th July 2009 and 31st March 2010 and you transferred to FITs before 1st April; OR
• It is installed after 1st April 2010 using an MCS* certificated product and installer;

* The Microgeneration Certification Scheme (MCS) is an independent scheme that certificates microgeneration products under 50kW and installers in accordance with consistent standards. Any commercial or larger scale systems, over 50kW, and all anaerobic digestion installations must apply directly through the Renewables Obligation Order feed-in tariff process for larger installations (ROO-FIT) process as they are not covered by the MCS.

Table of Feed-In Tariff levels from 1st April 2012 to 30th June 2012

This includes adjustments from the Fast-Track Review in August and September 2011, and Phase 1 of the Comprehensive Review effective on 3rd March, together with index linking effective from 1st April 2012.

If you are eligible to receive the FIT then you will benefit in 3 ways:

1. Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).

2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.

3. Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Deemed export

Domestic FIT installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out.

Example of how the Feed-in Tariff works

As an example, a typical domestic solar electricity system, with an installation size of 2 kWp could earn around:

• £700 per year from the Generation Tariff
• £25 per year from the Export Tariff
• £110 per year reduction in current electricity bills.

This gives a total saving of around £830 per year.

This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.

See our Feed-in Tariff/Cashback Calculator to find out how much you could earn, and see the payback times.

How to take advantage of the Feed-in Tariffs:

You will require an additional electricity meter to measure the electricity that your system is generating, and also to measure how much is being fed back into the electricity grid.

• Once your chosen us as your installer and after we have installed your electricity generating technology, we will register you on the central FIT database and you will then receive a certificate confirming FIT compliance.
• You must then inform your chosen energy supplier that you are eligible to receive the FIT by providing the certificate.
• The supplier will then cross reference your installation with the central FIT database.
• Payments will then be made by your energy supplier at intervals to be decided between you and your supplier.
• You may be required to provide meter readings to the suppliers if requested.

A list of the energy suppliers who can provide FITs can be found on the OfGem website.

If you want to opt out of the guaranteed export tariff you must inform the supplier. You may want to do this if you chose to use a power purchase agreement. (This is a legal contract between you and your electricity provider.)