The feed-in tariff (FIT) scheme introduced by the government pays you for every unit of electricity your solar PV system generates. This is whether you use it or not, you still get paid for what is generated.
The scheme has helped to encourage over half a million homeowners and thousands of businesses to install solar PV on their premises. The Government has a target of generating 15% of UK electricity demand via renewable energy sources by the year 2020.
In December 2015 a lengthy consultation period that tariff was cut down. However, this has reduced the price of solar dramatically. PV panels are still a good investment from both a financial and environmental perspective, and the reduction in the price of solar has taken off the need for high tariffs to make it attractive.
The FIT (feed in tariff) was introduced in 2010 to incentivise people to invest in solar panels and wind power with guaranteed tax-free payments for 20 years. These payments, based on how many units (kWh) your system generates and exports, are also increased in line with inflation.
We can size you a solar PV system through an initial consultation or online and let you know what returns and benefits you will get from a solar PV installation. We calculate this with software using a standard assessment procedure that is very accurate. Not one person has ever underperformed on our predictions if anything they usually produce quite a bit more.
The generation tariff?
The FIT (feed in tariff) has two two parts to it; one part is called the ‘generation tariff.’ Your electricity supplier will pay you for what you produce when you give them your generation meter reading (we install this with solar PV) for every unit (kWh) of electricity your system generates, whether you use it or not.
The export tariff
The second of this of the FIT is the called ‘export tariff,’ and this is for smaller systems under 30 kWp. Your electricity provider such as Eon, British Gas or whoever will assume you only use half of the electricity generated. Meaning they expect that you are sending (exporting) half of this back to the grid. Consequently, you will get paid the equivalent to half of your generation in export on top also. YES on top of the generation tariff.
Does the FIT rate change over time?
When you install a solar PV system, the current rate is locked in for the duration of your 20-year term, so if there are any changes to the tariff in the future, this will not apply to you. You get the tariff rate you signed up for all through the 20 year lifetime of the tariff. Prices are set to regress at an incremental, fixed rate every three months, so it is better to move quickly.
Will I eligible for the feed-in tariff and how do I register?
Everybody qualifies for the feed-in-tariff, but some rules have to be met. We will look into this for you and let you know what tariff you are entitled to; this is based on certain criteria, how big the system is, do you have an EPC (energy performance certificate) for your property that is rated ‘D’ or above. If you don’t, there is no need to worry we can sort this out for you.
We will also do all the registration documents; you can leave it safe in our hands that your investment is correctly and promptly signed up for the tariff after installation.