Feed-in Tariff (FiT)
The Feed-In Tariff Explained
The Feed in Tariff (or FiT as it is commonly known) is a government incentive to encourage you to purchase a solar installation for your home or business.
This means that you get paid for the electricity you generate from your solar installation and is composed of two parts:
- Generation tariff: Your energy supplier will pay you a set rate for each unit (i.e. kWh) of electricity you generate, regardless of whether you have used that free electricity or not.
- Export tariff: Your energy supplier will also pay you for the electricity you export back to the grid. This is the free electricity generated by your solar installation, which you have not had the opportunity to use. Currently this is a fixed amount of 50% of the electricity you generate, even if you have exported a different amount. This will be the case until Smart Meters are rolled out across the country, which will be able to measure the actual amount exported.
Both types of payments are index linked and guaranteed for 20 years, so they will increase in value in line with the rate of inflation.
What is the current Feed-In Tariff rate?
The payment you receive will depend on the size of your solar installation. This rate is the same for all domestic installations which are up to 4kWp in size, so this will cover the vast majority of homes in the UK. Systems larger than 4kWp will receive a different FIT.
The current FIT rates are displayed on the ofgem website.
The rate is reviewed and decreased periodically by the government. Remember, once you are registered to receive the FIT, this rate is fixed and index linked for 20 years, so you will not be affected by any future changes in the value of the FIT.
Do all homes receive the same Feed-In Tariff?
The FIT is paid at a higher, lower or medium rate. The rate you receive will depend on how energy efficient your home is. This is measured by an Energy Performance Certificate (EPC) , which gives a property an energy efficiency rating from A (most efficient) to G (least efficient).
Your house needs to be rated at grade D or higher to receive the maximum FiT rate. Installations that do not meet the requirement will receive a lower tariff.
If you do not have an EPC, your Energeasy Solar installer can add this to their quotation and organise this for you.
Remember - you will only be eligible to claim the FIT if you can provide a valid EPC at the time you make your application.
What do I need to do to ensure I receive the Feed-In Tariff?
- To ensure you qualify for the FiT, make sure that your installer is certified under the Microgeneration Certification Scheme (MCS).
At Rexel, all Energeasy Solar installers are MCS accredited.
- Once installed, your installer must register your solar installation, so you can claim the FiT. They must have done so on the MCS database within ten working days of commissioning your installation.
- Following this, your installer will issue with an MCS certificate – and you need this to be able to claim the FiT. It is important you register straight away, in order that you can claim for your first FiT payment as soon as possible. The date your completed application is received by your energy provider is the date you become eligible for FIT payments.
- The FIT licensee will then determine your eligibility, and will add details to the Central FIT Register.
- For the latest up to date information of how to register for and claim the FiT, click here to visit the ofgem website
How often can I claim the Feed-In Tariff?
You can receive a payment four times a year, as you are entitled to claim it each quarter.
The amount of energy your solar installation generates will be measured by an approved generation meter, which will be supplied by your installer as part of your installation. You simply take readings from this meter and then submit a return to your electricity supplier, who will pay the FiT money into your bank account.