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Solar PV: UK Feed in Tariffs (FITs) - 1st October 2016 - 31st March 2017

Updated: December 2016. The solar PV Feed in Tariff (FIT) is a government backed incentive administered and regulated by OFGEM. The Feed in Tariff obliges the traditional energy companies (known in this context as FIT Licensees) to pay the owner of a solar PV system for the clean energy that is generated even if the energy is used on-site and also guarantees an additional price (per kWh) for the energy that is sold/exported.

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Solar PV Feed in Tariff Generation Rates (1st October 2016 - 31st December 2016)

The solar PV Feed in Tariff rates below apply to eligible solar PV systems with an EPC rating of grade 'D' or higher that are installed from 1st October 2016 to 31st December 2016.

Solar PV System Size:

Tariff Rates : From 01/10/2016

Tariff Lifetime:
0kWp - 10kWp 4.18p per kWh 20 years
10kWp - 50kWp 4.39 per kWh 20 years
50kWp - 250kWp 2.03p per kWh 20 years

Solar PV Feed in Tariff Generation Rates (1st January 2017 - 31st March 2017)

The solar PV Feed in Tariff rates below apply to eligible solar PV systems with an EPC rating of grade 'D' or higher that are installed from 1st January 2017 to 31st March 2017.

Solar PV System Size:

Tariff Rates : From 01/01/2017

Tariff Lifetime:
0kWp - 10kWp 4.11p per kWh 20 years
10kWp - 50kWp 4.32 per kWh 20 years
50kWp - 250kWp 1.99p per kWh 20 years
Solar PV Feed in Tariff Calculations

The Generation Tariff

The solar PV generation tariff guarantees a fixed payment (usually paid quarterly) based on the size of solar PV system that is installed and the amount of power (measured in kWh) that the solar PV system generates, the power is measued using an OFGEM approved generation meter which is provided by the installer. Payments are guaranteed for 20 years and payment rates are index linked to inflation (using the Retail Price Index).

Feed in tariff rates are fixed based on the installation date for the full 20 years (+ RPI increases).

Solar PV Feed in Tariff - Export Tariff

The Solar PV Export Tariff

The solar PV export tariff applies to the proportion of clean energy that is exported (i.e. sold via the national grid mains connection for others to use) and is set at a buy price of 4.91p per kWh The export rate is guaranteed for 20 years and also index linked to the Retail Price Index (RPI).

As many residential properties are not yet installed with 'smart meters' which are able to measure the amount of solar power that is exported, export tariff payments in these situations are based on the assumption that 50% of a solar PV systems power generation will be exported. Solar PV systems of over 30kWp in size are automatically provided with a 'smart' meter that measures the real amount of power that is exported.

Solar PV Feed in Tariff

Who is the Solar PV Feed in Tariff (FIT) for?

The Solar PV Feed in Tariff is available for everyone including homeowners, businesses, farms, factories, schools, community groups and land owners. Income from the Feed in Tariff is not subject to income tax for homeowners. Solar PV systems of all types and size are eligible for the Solar PV Feed in tariff

Essentially the Feed in Tariff or 'Clean Energy Cashback Scheme' comprises of two tariffs, the first is the Generation Tariff:

MCS Approved

Eligible Solar PV Systems

The Solar Feed in Tariff can be applied to any type of solar PV system including off-grid PV systems (the generation tariff only), Building Integrated PV (BIPV) systems and ground mounted systems providing that both the solar equipment and the solar installer have been inspected and accredited to UK Microgeneration Certification Scheme (MCS) standards.

For a solar PV system to be eligible for the feed in tariff at the highest rate the property where the system is to be installed must also meet an energy efficiency rating of grade 'D' or above. However lower FIT rates are available for systems installed on non grade 'D' properties. Please contact us for further information.

Solar PV Panel Installation

Solar PV Feed in Tariff Rate Degression

The rates payable from the solar PV Feed in Tariff for new solar PV installations are set on the date of the installation. The rates are then fixed for the next 20 years (+ RPI increases).

Solar PV Feed in Tariff rates payable for new installations usually (but not always) reduce every 2-3 months i.e. you may receive a higher tariff rate (fixed for twenty years) by installing earlier.

OFGEM

How to Register a System

Once the installer has commissioned and tested the system on completion you will be given an MCS number this is a record of your system, the details are recorded in the MCS database, you are then a registered generator. OFGEM administers the Feed in Tariff register which holds the details of all registered generators. Once you have the MCS number system registration for the Feed in Tariff is then carried out via the FIT Licensees (the power companies). A list of all the registered FIT Licensees can be found here:

Registered Feed in Tariff Licensed Suppliers

FIT payments are made by the FIT Licensees.

Solar PV Generation Meter

Key Points:

  • The Generation Tariff is based on the amount of power (measured in kWh) a system generates, this power does not need to be sold, you can use the free electricity you generate and export any excesses independently of the FIT.
  • The power you export/sell via the grid can be sold for additional profit.
  • The Feed in Tariff is applicable to all types of solar PV system but both the equipment and the installer must be certified to UK Microgenertion Certification Scheme (MCS) standards.
Solar PV EPCs
  • The property where the solar PV system is to be installed must also meet an energy efficiency rating of grade 'D' or above to qualify for the highest rate. A current Energy Performance Certificate (EPC) must be supplied with the FIT application.
  • FIT payments are index linked to inflation, this means that if inflation rises than so will the FIT payment.
  • FIT payments are non-taxable for homeowners.
  • FIT payments and rates are guaranteed for 20 years.
  • Different rates are payable for different size systems (based on max power output in kWp).
  • Your installer must register your system on the MCS database and provide you with an MCS number.
  • FIT registration and FIT payments are handled by FIT Licensees (the participating power companies).
 

Get Prepared:

  • Before a system is installed have a good idea of which energy company you will use to handle the FIT registration. Also remember you will be buying electricity as well as selling.
  • Carry out an EPC assesment before installing the solar PV system.
  • Have FIT application forms, terms, conditions and contracts ready for review at the system design stage. Work with your installer to ensure that the FIT application is right first time, paperwork is accurate and complete and the benefits of the FITs are maximised.
  • Look at your electricity usage in terms of times of the day, once installed it's very easy to forget about your mini powerstation quietly pumping out free electricity during the day.
 

Talk to us:

There is no getting away from it, the solar PV Feed in Tariff (FIT) appears complicated and there are a lot of things to consider. When updating this article although we tried to make it as user friendly as possible we quickly realised how complicated the FIT process appears. But, in reality an experienced MCS installer will be familiar with all of the requirements and conditions needed to install an eligible system, and will help to make the Feed in Tariff (FIT) application a smooth and simple process.

If you would like any further information, would like to confirm something, have questions about eligible solar PV systems or the Feed in Tariff please feel free to contact us

Data Source: OFGEM Tariff Tables

https://www.ofgem.gov.uk/environmental-programmes/feed-tariff-fit-scheme/tariff-tables

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