Under this scheme energy suppliers have to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources.
About the Scheme
The FITs 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.
Once you have a microgeneration technology installed you should experience a monthly reduction in your electricity bill and then receive an income from your Feed-in tariff provider.
The scheme covers the following electricity-generating technologies, up to an installation size of 4 KiloWatts:
Solar electricity (PV) (roof mounted or stand alone)
You will qualify for the full FIT payments if:
It is installed after 1st April 2010 using an MCS* certificated product and installer.
How the scheme works
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 of 1 April 2011 which take into account rise in Retail Price Index (RPI) which was 4.8%.
Tariff levels vary depending on the scale of the installation.
The tariff levels shown in the table above apply to installations completed from 15th July 2009 to 31st March 2012 for the lifetime of the tariff.
All generation and export tariffs will be linked to the Retail Price Index (RPI) which ensures that each year they follow the rate of inflation.
You are eligible for full generation tariff and export tariff.
Contact your energy supplier, and send them your MCS certificate to tell them you are eligible to receive FITs.
If you install after the 2nd year of the scheme your tariff could be reduced, depending on the installation size.
Tariff levels, for technologies installed between 15th July 2009 and
31st March 2012 of most significance to householders each kWh Generated
| Technology | Scale | Tariff Level (p/kWh)* | Tariff Lifetime (years) |
| Solar electricity (PV) | Up to 4KW | 43.3 | 25 |
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