What is the Feed In Tariff?

Solar PV Has become a much more financially attractive technology in recent years with the introduction of Feed in Tariffs in the UK, which is similar to what has been in place in Europe for a number of years.

The FIT replaced government grant schemes so there is no longer financial assistance to have a system installed but you are paid for what is generated.

FITs are broken down into two separate areas which are the Generation Tariff and Export Tariff.

Generation Tariff

This Tariff is set with your electricity supplier who pays you a fixed amount for every unit of electricity you generate, whether you use it yourself or sell it back to the grid. This payment is guaranteed for 25 years and is index linked.

Export Tariff

The export tariff is an additional amount you receive on top of the Generation Tariff for any electricity you don't use yourself and export back into the grid.

How do I receive my payments? 

You will require an additional electricity meter to measure the electricity that your system is generating (known as a total generation meter), This meter is included and will be fitted during your installation. You will be required to provide meter readings to the suppliers of your electricity, usually every quarter, which is also the period that payments are typically paid from your supplier. Your energy supplier will contact you to arrange this once your application has been made to them.

Qualifying for the Feed in Tariff

Householders who install will only receive higher rate provided that their home has an Energy Performance Certificate (EPC) Band D or better (A being the best). Homes which do not have an EPC Band D or better will get will get a the reduced generation tariff rate in force at the time of installation.

Energy Performance Certificate (EPC) requirement 

A domestic property must meet a specified minimum energy efficiency requirement to be eligible for the highest available tariff under the FIT. The Government have set this at Energy Performance Certificate (EPC) rating D or above. If it does not meet these energy efficiency requirements, the Solar PV installation may receive the lower tariff. This requirement to reach a minimum energy efficiency standard will also apply to extensions of existing PV installations. There are no transitional arrangements. Even if the PV installation is not on a building or on a building for which an EPC can be obtained, this condition remains so long as the solar PV system is wired to provide electricity to a building that it is possible able to obtain an EPC for. The Government state that for the 51% of dwellings that do not already meet the required standard, reaching a D rating may require the installation of some, but not all of the following measures:

  • loft insulation
  • cavity wall insulation (but not solid wall insulation)
  • heating controls
  • hot water cylinder insulation
  • installation of a replacement boiler

We would recommend contacting a suitably qualified assessor to discuss the likelihood of your property meeting the EPC requirements prior to making and decisions to install a system based on financial returns alone.

Top 5 reasons to install Solar PV

  • Generate free electricity
  • Reduce energy bills
  • Sound return on your investment
  • Increased value of your home
  • Help to reduce CO2