FAQs - Feed-In Tariffs (FITs)
The solar PV Feed-In Tariff system and wind turbine Feed-In Tariff system make solar photovoltaic panels and wind turbines particularly attractive renewable energy solutions when it comes to return on investment. We've tried to include answers to some of the most prevalent questions about Feed-In Tariff systems here, but if you have a more specific query, do take a look at our links page>> for other helpful information sites or contact us>>
What exactly are ‘Feed-In Tariffs’?
Feed-In Tariffs (FITs) are financial support measures introduced by the government to help deliver the UK’s 2020 renewable energy targets. The intention is to increase the uptake of small-scale renewable energy generation by rewarding households and small businesses for generating their own renewable electricity.
The FIT programme provides 20 year (or 25 years for Solar PV) guaranteed per unit support payments (p/kWh) for electricity generation.
Do the Feed-In Tariffs apply to all types of renewable electricity?
There are specific wind turbine Feed-In Tariffs and solar PV Feed-In Tariffs, as well as tariffs which apply to many other - but not all - types of renewable electricity.
Why the name: ‘Feed-In’ Tariffs?
Germany was the first country to use this tariff system in the 1990s. At that point, it applied only to power which was "fed in" to the electricity grid.
In the UK, the reward tariffs apply to every unit of electricity produced by the system, whether it is used on site or fed back in to the grid. The title 'Feed-In Tariff' is a bit of a misnomer: production tariffs would be a more accurate name.
How much is the Feed-In Tariff paid for each kilowatt hour?
The wind turbine Feed-In Tariff and solar PV Feed-In Tariff vary by size of system. Find out more >>
Do I have to pay tax on my Feed-In Tariff income?
Income from the Feed-In Tariffs is free of income tax for householders who install systems primarily for their own use.
Is the Feed-In Tariff subject to inflation?
The wind turbine Feed-In Tariff and solar PV Feed-In Tariff are index-linked to the Retail Price Index (RPI).
How long will I get the Feed-In Tariff payments for?
The wind turbine Feed-In Tariff will be paid for a period of 20 years from the date the renewable energy system is first registered.
The solar PV Feed-In Tariff payout period is 25 years.
If for any reason, the system’s life is less than this period, the electricity generation will stop and no tariff will be paid.
Who pays for the Feed-In Tariffs?
The system is administered by the official regulator Ofgem, and uses money from a levy on all electricity sales, collected and distributed by the licensed electricity suppliers (energy providers).
I have installed / am about to install a system - will it qualify?
New systems where the installation was completed after 15th July 2009 qualify for FIT payments. Existing systems installed before 15th July will qualify only if they are under 50 kilowatts and registered for the Renewables Obligation (RO).
What is the definition of installation date?
The consultation document says "installation completed". We believe this should therefore be the latest date that the installation was installed and commissioned.
In the case of grid-connected electrical systems it could reasonably be the date it first delivered power to the grid.
In the case of systems registered for the Renewables Obligation, assume that installation must have been completed by the date of RO accreditation.
Are there any system size limits to qualify for the FITs?
Yes, the wind turbine Feed-In Tariff and solar PV Feed-In Tariffthe only apply for systems up to 5 megawatts. This size of system is adequate to suit all household uses and most businesses, except for large factories.
Systems between 50kW and 5MW can choose to use the Renewables Obligation programme.
Does my eligibility depend on which installer and products I choose?
Yes, to qualify for wind turbine Feed-In Tariff or solar PV Feed-In Tariff payments any electrical system under 50kW must use products and be installed by a company which are accredited under the micro-generation certification scheme.
What is the Micro-generation Certification Scheme (MCS)?
The MCS is a scheme to provide assurance to customers for domestic scale generation systems. It provides both for accreditation of installers and certification of products. More>>
It is also linked to the Renewable Energy Assurance Scheme (REAL Assurance), which provides protection against mis-selling and for other aspects of the system supply contract. More>>
Mosscliff Environmental Ltd is fully accredited under the Micro-generation Certification Scheme, in membership of the Renewable Energy Association and signed up to the Renewable Energy Assurance Ltd code of practice.
Do I need to register my system to qualify for my FIT payments?
No ,we will register your system for you in our role as micro-generation accredited installer once we have completed the installation. You will then need to approach your energy supplier to begin receiving FIT payments.
What is tariff degression and how would it apply to my system?
The level of the tariff applicable to systems installed in the future will decrease with time, according to annual degression rates.
The degression rate is used only to determine the tariff applicable to the system based on its registration date - once you've been allocated a tariff that rate would apply for the full 20 or 25 years.
Do I have to accept the 3p/unit of power exported or can I trade the electricity on the market?
You don't have to accept the fixed price; you can opt to negotiate your export price on the market. However, this must be decided at the start of each year as you can only swap between fixed and market pricing once a year.
My system is not connected to the grid, can I still receive the production aspect of the tariffs?
You can access the standard Generation Tariff payments, but not the Export Tariffs as your system cannot sell out power for redistribution. The proposition is still however an attractive one because off-grid system costs tend to be higher (diesel generation sets etc.) and these can be avoided.
I have already installed a system in the past and received a grant at that time; will I still be eligible for Feed-In Tariffs?
Wind turbine Feed-In Tariff and solar PV Feed-In Tariff payments are open to all householders regardless of whether they have received a grant or not. The only consideration is whether or not you are already registered for ROCs. If this is the case, you will receive a different tariff rate.
Systems installed and registered for ROCs before 15.07.09 (date of consultation launch) are still be able to receive FITs, however they will receive a lower FIT rate at 9p/kWh, regardless of technology.
What are the arrangements for systems already registered for the Renewables Obligation (RO) and wanting to transfer to FITs?
Systems under 50kW and registered for the RO must transfer to the FITs. Systems between 50KW and 5MW have the choice of whether they convert. Systems above 5MW cannot transfer - they have to stay in the Renewable Obligation.
Will grants have to be repaid?
The wind turbine Feed-In Tariff and solar PV Feed-In Tariff payments are available to all energy systems, whether or not they have received grants in the past.
For a long time, it was believed that many grants would need to be repaid if a system is to be registered for the Tariffs. This was dependent on the grant scheme:
- LCBP Low Carbon Buildings Programme - householders (Stream 1): No need to repay
- LCBP Low Carbon Buildings Programme - commercial (Stream 2): Need to repay
- Energy Saving Scotland Home Renewables (formerly SCHRI): No need to repay
For many other grant schemes it is still unclear if grants need to be repaid, including:
- RDPE, the Rural Development Programme for England
- YESS, the Young Entrant Support Scheme in Wales
- SRDP, the Scottish Rural Development Programme
The latest information is available through a range of websites. More>>
Can builders claim FITs on installations under the Code for Sustainable Homes?
Yes they can. The government has accepted that this would be a good way of helping builders cover any additional costs in achieving Zero Carbon Buildings.
Can renewable systems claim both the Feed-In Tariffs and the Renewables Obligation?
No. Systems are only eligible for one of the schemes.The Feed-In Tariffs scheme is relevant to small systems; larger systems above 5 megawatts access the RO. Systems between 50kW and 5MW get a one-off choice between the two programmes.