Solar Feed in Tariff
The long awaited solar Feed In Tariff (FIT) has become active in the UK on the 1 April 2010. The introduction of solar Feed In Tariffs forces energy utility companies to purchase electricity generated by businesses, individuals and community initiatives.
The solar feed in tariff scheme agrees the price for each unit of electricity that is produced and also provides a separate payment for any excess energy provided to the national grid.
How the feed in tariff works
- The feed in tariff provides a payment for every kilo watt hour unit of electricity that is produced by your photovoltaic solar panels. The rate you get paid by the energy utility company is the same for each energy provider and is up to 21 pence per kilo watt hour for a normal household. Different feed in tariff rates apply to different energy customers eg businesses and houses with existing solar installations.
- Any electricity produced by a solar photovoltaic system that is paid for by a feed in tariff payment can be used in your home instead of energy purchased from the national grid. This free energy will reduce your electricity bills on top of the payment you have received from the feed in tariff.
- You won't always be able to use all of the free energy you generate from your solar photovoltaic system but don't worry because you will get an export top up payment of 3 pence per kilo watt hour on top the feed in tariff payment.
We are able to take full advantage of the feed in tariff opportunity as an MCS accredited installer.
The different rates for the Feed in Tariff
| Scale of system | Rate / kWh | Tariff Lifetime | |
|---|---|---|---|
| PV ≤4 kWp (retrofit/exiting) | Typical Domestic | 21.0 pence | 25 years |
| PV ≤4 kWp (new build) | Domestic | 21.0 pence | 25 years |
| PV >4-10 kWp | Small Commercial | 16.8 pence | 25 years |
| PV >10-100 kWp | Large Commercial | 15.2 pence | 25 years |
| PV >100kW-5 MWp | Very Large Commercial | 12.9 pence | 25 years |
(After April 1st the property must have an EPC level D to get the full feed in tariff)
What photovoltaic solar systems qualify for feed in tariffs?
In order to be eligible for feed in tariffs your solar photovoltaic system must be:
- Installed by an installer approved by the Microgeneration Certification Scheme (MCS)
- The solar panels must be approved by the MCS
- The solar inverter must be approved by the MCS
Rayotec were one of the first of only a few companies to qualify under the MCS and Rayotect only supply the highest standard MCS approved products.
What do I have to do to get the Feed In Tariff after installation?
Along with your solar photovoltaic system, Rayotec will also install a meter to measure the amount of electricity generated by the solar installation. When the installation is completed, we will register you on the Feed In Tariff central database and you will be issued with a certificate to confirm your registration for the Feed In Tariff. You then simply have to send your certificate to your electricity provider to prove you are eligible to receive the Feed In Tariff payments. The Feed In Tariff payments are made directly to you by your energy provider in accordance with their payment terms.
Feed In Tariffs are set to beat inflation
Feed In Tariffs as well as the additional export tariff are set to match movements in the Retail Price Index (RPI). RPI is a measure of the rate of inflation in the UK and covers all household costs on an average month by month basis. By linking the Feed In Tariff and the export tariff to RPI the payments will increase overtime in line with inflation.
The average rate of inflation within the UK over the last 20 years has been over 3% and this is significantly more than interest rates on many saving accounts.
Feed In Tariffs are tax free
Unlike interest on savings accounts all the payments and savings created by the Feed In Tariff are completely tax free.
Should I wait a while until I get my Solar PV system?
The Feed In Tariff is fixed for 25 years from when you register but the amount of the Feed In Tariff payment is set to reduce each year so that the early adopters are better rewarded. In order to secure the highest price for your Feed In Tariff payments we recommend you to act quickly.
Summary of Feed In Tariffs
- The UK Feed In Tariffs are the most substantial tariffs in the world.
- The energy you are paid to generate can be sold back to the national grid if you don't use the energy yourself.
- The energy you do use yourself is free and reduces your electricity bills by reducing your dependence on the national grid.
- All savings and income from Feed In Tariffs and your PV system are tax free, which could saves you tax of between 20 and 50%.
- Feed In Tariff payments are linked to RPI and will increase in line with inflation.