Feed in Tariff UK - Earn Money From Your Solar System

In this section, you’ll find information on the Feed-in Tariff (FIT); the guaranteed payments for renewable electricity. For more info go to www.energysavingtrust.org.uk.

How the Feed-in Tariff (FIT) works
Feed-in Tariffs are paid on the electricity produced by renewable energy systems and there will be an additional bonus for any energy which is 'exported' to the grid. This means you get paid more for the energy you don't use than for that which you do, which encourages energy efficiency. At times when you are producing less electricity than you are using, the shortfall will be 'imported' from the grid and you will pay your electricity company for this in the usual way. If you are eligible to receive the Feed-in Tariff, 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.

Generation Tariffs
The main element of the Feed In Tariffs is the generation tariff for each kilowatt-hour the system produces.

The energy 'generation' tariff is paid on the total output of the renewable generation system whether you feed it into the grid or use it yourself

Yes you actually get paid for the energy you use!
Many people don't realize this because the name 'Feed-In Tariffs' suggests they only apply to what you feed in. The name was originally applied to the system in Germany, because the tariff was originally paid on that basis. Things have now evolved, but the name hasn't caught up.

The only exception to this rule is that tariffs are not paid if the energy is wasted just trying to get a tariff payment. .

How much is the generation tariff?
In the table on the left you’ll find a complete listing of the current Feed-In Tariff levels for PV systems installed before April 2012 and the proposed Feed-in Tariff levels for PV systems which were anounced 31st October 2011.

Export tariffs
In addition to the main generation tariff, you get an extra payment for electricity exported to the grid

What is the export tariff?
It is a bonus payment for every kilowatt-hour (kWh) your system exports to the electricity grid. When this payment is received, you are effectively selling that electricity to the supply company, who can then deliver it to other customers.
This payment has been established to provide an incentive for energy efficiency as you will get paid extra for every kWh you don't use but export instead.

How much is the export tariff?
A 'floor price' has been set in the legislation at 3p/kWh. You are entitled to receive this and it is index-linked to the retail price index.
However, you also have the opportunity to opt out of this fixed price and try to negotiate a better rate with your electricity supplier.
You have the opportunity each year to decide whether to accept the fixed 3p rate or to opt out. Unlike the generation tariff, this element will be the same whatever type of renewable energy is used.

How are the exports measured?
All the power flows relating to the Tariffs will in due course be metered as described below. To measure electricity, meters will be needed to measure each of the three energy flows (generation, import and export).

• You already have an import meter because that's the one your electricity bills are based on. Some of these can also measure the exports back to the grid.
• A generation meter is included as part of any eligible renewable system you install.

However, the whole country is changing over to 'Smart Meters' in the next few years and they will be able to cope with all this.

However in the initial years before Smart Meters are widely used, the export element will be 'deemed' to be 50% of the power generated by the system. Generators who believe their exports are substantially higher than this will be allowed to install suitable export meters and be paid on the metered level of exports.

Although the FITs are established in law, the money doesn't come from the Government, but from the energy market. They will pay for the FITs. The energy suppliers are actually the ones who pay the Feed-in tariff to you. Tariff recipients can however appoint an agent to collect the tariffs on their behalf.

What payments will you be eligible for, and how can you claim them?
If your PV-system (with MCS certified products) was installed after 1st April 2010 (by a MCS certified installer):

• 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.

Note: SUNKIT® by Oskomera Solar Power Solutions distributes only MCS certified products and has MCS accredited installers.