Feed In Tariff (FIT)
The Feed in Tariff scheme, commonly referred to as FIT’s, launched in April 2010 and is administered by the Department of Energy and Climate Change (DECC).
FIT’s are designed to stimulate the uptake of renewable energy production through paying an above market rate for all the electricity generated, whether consumed on site or not, by renewable energy equipment.
FIT’s offer additional income from exported energy, plus savings on energy bills at the current rate you are paying. In addition, FIT’s are guaranteed for 20 years, tax free for homeowners and linked to the higher RPI rate of inflation.
Who is eligible to claim FIT’s?
- Public sector
- Housing Associations
Which GenFIT products are eligible?
- Solar PV – Domestic and Commercial
- Wind Turbines – Domestic and Commercial
What are FIT rates?
FIT rates vary by technology and size in kW’s of the proposed generation equipment:
Solar PV Feed in Tariff rates:
|System Size (Capacity)||Tariff up to 30th June 2016||Tariff up to September 2016|
|Up to 10kW||4.32p||4.25p|
|10 to 50kW||4.53p||4.46p|
|50 to 250kW||2.38p||2.32p|
- Export tariffs of 4.5p/kWh is paid for surplus electricity that goes back to the grid. For systems less than 30kWp this is not metered and estimated to be 50% of what has been generated
- Tariff rates will reduce quarterly relative to up take – with 2 months notice
- Base reduction will be 3.5%, but could be more if uptake is high
- Tariff cuts will be skipped for up to two quarters if uptake is low
Solar PV – Energy Performance Requirement
From 1st April 2012, an Energy Performance Certificate (EPC) demonstrating a level ‘D’ banding is required for solar PV installations, in order to receive the highest available rate. If your property does not achieve a level ‘D’ or above, you will receive the lower rate of 6.85p/kWh from 1st August.
If you don’t already have a valid EPC we will arrange an EPC survey for you. Request an EPC.
Wind Turbine Tariff
|System Size (Capacity)||Tariffs to 31 March 2015||Tariff lifetime (Years)|
|Up to 1.5kW||14.45p||20|
|1.5kW to 15kW||14.45p||20|
|15 to 100kW||14.45p||20|
All FIT eligible installations qualify for export payments made to you by your chosen energy provider. The current export rates are:
- Solar PV – 4.5p/kWh
- All other technologies – 3.2p/kWh
Export tariffs are linked to RPI inflation and increase each April. The amount of energy exported, i.e. not used in your property, is estimated at 50% of total generated for systems up to 30kW in size.
Above 30kW an export meter will be required which will be included in the price you pay.
How to apply for FIT and export payments
You will need to obtain a FIT application form from your chosen energy provider. On completion of your installation we will issue you with an MCS certificate, which you will need to return with your completed FIT application.
Payback and rate of return
How long your system takes to repay the capital cost varies from technology type, size of installation and site specific factors.
For solar PV, a typical domestic 4kW South facing installation will payback in 9 years.
A 50kW commercial Solar PV system can payback in as little as 5-6 years. We offer a ‘commercial finance’ solution for qualifying commercial customers wishing to spread the capital cost over 5+ years.
A 10kW Wind turbine on a 20m mast with average wind speed of 5.7m/s would repay itself in 5-8 years.