Feed in Tariffs
Much has been said about the Feed in Tariff, which is the government's scheme to ensure that we are paid a premium rate for the electricity generated by us at our own premises, (our homes, our offices, factories, churches, community centres, schools etc). The actual level of payment per unit will be decided following the government's current consultations, but it is anticipated that this will dramatically reduce the time your PV system will take to pay for itself.
The tariff will be introduced from April 2010 so there has never been a better time to install PV. The feed in tariff was introduced as a model in Germany back in 2002, and in Spain a little later and has proved to be immensely successful in that electricity generation with PV has become widespread and effective in all manner of settings, from small home installations, to the largest commercial premises. Call us for more information about how the tariff will affect you, whether you already have PV or whether you are planning to install this technology.
Feed-in Tariffs - the important bits
- Earn from every kilowatt hour generated
- Tariff set by government - up to 36.5 pence per kWhr based on type and size, plus 5p bonus for power exported
- Last for 20 or 25 years
- All renewable electricity qualifies
- Household and business users
- Comes into force April 2010
- New systems installed now will qualify
What payments will you be eligible for, and how can you claim them?
The tariffs available and the process for receiving them vary, depending on when the technology was installed, and whether the system and the installer were certificated under the MCS scheme:
The following advice applies to domestic installations. If you have installed a qualifying electricity-generating system non-domestic property with a grant from the Low Carbon Buildings Programme, see the Low Carbon Buildings Programme website for further guidance.
- You must contact Ofgem to get your ROC transferred to the FIT.
- You will receive 9p/kWh for every unit generated plus 3p/kWh for every unit exported
- You must contact Ofgem by 31st March 2010 to apply for Renewables Obligation accreditation.
- You will receive 9p/kWh for every unit generated plus 3p/kWh for every unit exported
- You can contact OFGEM to apply for Renewables Obligation accreditation by 31st March 2010 and transfer over to FITs on 1st April. You will get the full FIT payment.
- Or, you can wait until 1st April and apply under the FIT scheme directly – see below.
- If the system is not MCS, must apply to Ofgem before 1st April for RO accreditation.
- If system is MCS, must contact FIT licensee for registration (energy supplier).
- 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.
Installed before July 15th 2009 and previously collected Renewables Obligation Certificate (ROCs) payments
Installed before July 15th 2009 but not registered for Renewables Obligation Certificates
Installed between 15th July 2009 and 1st April 2010
Installed between 15th July 2009 and 1st April, applying for FITs after April 1st 2010
Installed after 1st April 2010. MCS certificated product and installer