
Feed-in Tariff (Clean Energy Cashback) scheme
Feed-in Tariffs (FITs) will be introduced to Great Britain on 1st April 2010. The scheme requires energy suppliers to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity (PV) panels or wind turbines.
The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.
About the Scheme
The scheme covers the following electricity-generating technologies, up to 5 Mega Watts:
- Solar electricity (PV) (roof mounted or stand alone)
- Wind turbine (building mounted or free standing)
- Hydroelectricity
- Anaerobic digestion
- Micro combined heat and power (mCHP) (limited to a pilot at this stage)
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 – (we at inspect are currently undergoing the MCS accreditation process and will be able to fully comply with all requirements soon).
You will qualify for the full FIT payments if:
- The technology was installed between 15th July 2009 and 31st March 2010; OR
- It is installed on or after 1st April 2010 using an MCS certificated product and by an MCS* certificated installer; (We at inspect are currently undergoing the MCS accreditation process and will be able to fully comply with all requirements).
* The Microgeneration Certification Scheme (MCS) is an independent scheme that certificates microgeneration products under 50kW and installers in accordance with consistent standards. Any systems over 50kW and all anaerobic digestion installations must apply directly through the ROO-FIT process as they are not covered by the MCS.
How the scheme works
If you are eligible to receive the FIT then you will benefit in 3 ways:
1. Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).
2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.
3. Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.
Example of how the Feed-in Tariff works
As an example, a typical domestic solar electricity system, with a rated size of 2 kWp could earn around:
• £700 per year from the Generation Tariff
• £25 per year from the Export Tariff
• £110 per year reduction in current electricity bills.
This gives a total saving of around £830 per year.
This assumes 50% of the electricity generated is exported, this figure will vary.
See our Feed-in Tariff/Cashback Calculator to find out how much you could earn, and see the payback times - coming soon.
How to take part
See our simple step by step guide to installing an electricity generating, low carbon technology and receiving the Feed-in Tariff below:
- Firstly check that you have taken basic energy efficiency measures.
- Decide which technology is suitable for your home.
- Let us install the technology.
- Once installed you need to notify your energy supplier.
- They will check to confirm that you are eligible for the tariff.
- You receive the Clean Energy Cashback!
You will require an additional electricity meter to measure the electricity that your system is generating, and also to measure how much is being fed back into the electricity grid.
Once you have installed your generating technology you must inform your chosen energy supplier that you are eligible to receive the FIT. We will then register your installation onto the Central FIT Register, which is administered by Ofgem. Payments will be made by your energy supplier at intervals to be decided between you and your supplier. You may be required to provide meter readings to the suppliers if requested.
If you want to opt out of the guaranteed export tariff you must inform the supplier. You may want to do this if you chose to use a power purchase agreement.
Tariff levels, for technologies installed between 15th July 2009 and 31st March 2012
|
Technology
|
Scale
|
Tariff level (p/kWh)
|
Tariff lifetime (years)
|
|
Solar electricity (PV)
|
≤4 kW (retro fit)
|
41.3
|
25
|
|
Solar electricity (PV)
|
≤4 kW (new build)
|
36.1
|
25
|
|
Wind
|
≤1.5 kW
|
34.5
|
20
|
|
Wind
|
>1.5 - 15 kW
|
26.7
|
20
|
|
Micro CHP
|
≤2kW
|
10.0
|
10
|
|
Hydroelectricity
|
≤15 kW
|
19.9
|
20
|
Tariff levels vary depending on the scale of the installation.
The tariff levels shown in the table above apply to installations completed from 15th July 2009 to 31st March 2012 for the lifetime of the tariff. After this date, the rates decrease each year for new entrants into the scheme.
All generation and export tariffs will be linked to the Retail Price Index (RPI) which ensures that each year they follow the rate of inflation.
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: (We at inspect are currently undergoing the MCS accreditation process and will be able to fully comply with all requirements).
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.
Installed before July 15th 2009 and previously collected Renewables Obligation Certificate (ROCs) payments
• 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
Installed before July 15th 2009 but not registered for Renewables Obligation Certificates
• 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
Installed between 15th July 2009 and 1st April 2010
• 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.
Installed between 15th July 2009 and 1st April, applying for FITs after April 1st 2010
• 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). (We at inspect are currently undergoing the MCS accreditation process and will be able to fully comply with all requirements).
Installed after 1st April 2010. MCS certificated product and installer
• 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 after 1st April 2010. Non-MCS certificated product and installer
• Systems that are not MCS certificated will not be eligible to receive the FIT generation tariff or the guaranteed FIT export tariff. There is the possibility of receiving generation and export tariffs outside of the FIT scheme if privately negotiated.
• You will still benefit from lower electricity bills. The saving will depend on how much of the electricity you generate is used on-site.
Small Generators (50kW to 5MW) installed from 15th July 2009
• You have a one off choice between receiving FITs or RO.
• If you wish to transfer from Renewables Obligation Certificates (ROCs) to FITs email
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by 1st April 2010.
• If you switch to FITs then you will be eligible to receive the full generation tariff and export tariff.
Don’t forget energy efficiency!
Before you invest in renewable or low carbon energy systems you should always make sure you house is as energy efficient as possible, so that the energy you generate is not wasted. You should ensure you have carried out the following measures:
• Ensure you have adequate loft and cavity wall insulation.
• Check you have installed heating controls
• Replace all old bulbs with low energy lighting
• Always buy Energy Saving Recommended rated appliances
These measures will help lower your energy bills, and ensure that the energy you generate is used as effectively as possible. Find out how to make your home more energy efficient.
Once your system is installed you should review the way you use energy in the home so you can make the most of the energy you generate. For example, solar electricity panels only generate electricity during the daylight hours, so it’s a good idea to use the washing machine and dishwasher during the day, rather than at night time. This means you can minimise the amount of electricity you have to buy from your supplier.
Financial support may be available for help with upfront costs of installing energy efficiency measures.
FAQs
Can I still get a grant to help pay for my installation?
Grants for electricity generating technologies under the Low Carbon Buildings Programme are now closed in England and Wales and Northern Ireland. Note that the situation with regards to the Energy Saving Scotland home renewables grant scheme is also closed to grants for electricity generating technologies. Grant availability for heat generating technologies is due to continue as long as funds last. Grants are allocated on a first come first served basis.
Will I be eligible if I have already received a grant?
Domestic installations which received a grant will still be eligible for the Clean Energy Cashback.
Non-domestic installations (charities, schools communities and other not-for-profit organisations) which received a grant under stream 2 of the Low Carbon Buildings Programme after 15 July 2009, have the choice of either:
• retaining their grant and not being eligible for FITs;
• or repaying their grant and claiming FITs.
Those who received a Stream 2 grant before 15th July cannot claim the Clean Energy Cashback. However, up to 31st march 2010 they may be able to apply to Ofgem for a ROC, to qualify for the lower tariff of 9p/kWh, as well as the 3p/kWh export tariff.
Will I be eligible to receive the tariff if I move into a home that already has an electricity generating technology?
FIT eligibility remains with the installation, even if the ownership of the home or generating technology changes. Therefore the technology must have been eligible before you move in, even if it is not registered yet.
What happens if I move home?
Ownership of the technology is linked to the site and, therefore, in the case where a building or homeownership changes, the ownership of the technology would also transfer to the new owner.
I rent my property. If my landlord installs an electricity generating technology, who would receive the FITs?
It will be up to landlords and tenants of domestic or commercial property to come to an arrangement about the receipt of payments and on-site electricity use benefits.
Will I need a special meter to be able to claim FITs?
Generation must be metered and FITs payments are made to generators on the basis of metered generation. Meters will need to be able to measure generation, usage and import. However, as an interim measure, DECC has announced that at the very small scale, the amount of exports for the payment of export tariffs can be deemed (estimated), subject to the following:
• These arrangements will only apply until the finalising of specifications for smart meters;
• These arrangements do not apply if export meters exist already, or are provided at the generator's expense
My system is connected to a battery – can I still claim the Feed-in Tariff?
Yes you will be eligible to receive a generation tariff at the rate 29.3p/kWh. If your system is not fitted directly to a building but electricity generated is wired back to the building to be used on site, then you will be eligible to receive the tariff rate that is applicable for the type and capacity of the generating technology.
This information, courtesy of the Energy Saving Trust, is accurate to the best of our knowledge at time of publication. Some details may be subject to change.