Solar
PV: UK Feed in Tariffs (FITs)
Updated: 1st November 2011, the tariff rates below apply to eligable
systems which are installed from 1st April 2012.
Introduction
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 they
generate and also guarantees an additional price (per kWh) for the
energy that they sell/export.
The Solar PV Feed in Tariff is available for everyone including homeowners,
businesses, farms, factories, schools, and land owners. Income from
the Feed in Tariff is not subject to tax for homeowners.
Essentially the Clean Energy Cashback Scheme or FIT comprises of
two tariffs, the first is the Generation Tariff:
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 25 years and payment rates are index linked to inflation (using
the Retail Price Index). The current rates are outlined in the table
below:
Solar PV Feed in Tariff Generation Rates
Updated: 1st November 2011, rates apply to eligable systems which
are installed after 1st April 2012.
| Solar
PV System Size: |
Tariff
Rates :From 01/04/2012 |
Tariff
Lifetime: |
| 0kWp
- 4kWp |
21.0p
per kWh |
25
years |
| 4kWp
- 10kWp |
16.8
per kWh |
25
years |
| 10kWp
- 50kWp |
15.2p
per kWh |
25
years |
| 50kWp
- 250kWp |
12.9p
per kWh |
25
Years |
| 250kWp
- 5MWp |
8.5p
per kWh |
25
years |
The
Export Tariff
The
solar PV export tariff applies to the proportion
of clean energy that is exported (i.e. sold
via the grid for others to use) and is set
at a buy price of 3.1p per kWh. The export
rate is guaranteed for 25 years and also
index linked to the Retail Price Index (RPI).
The export tariff is not applicable for off-grid
PV systems.
Eligable 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) and Building
Integrated PV (BIPV) 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 eligable for the feed in tariff the property
where the system is to be installed must also meet an energy efficiency
rating of grade 'C' or above.
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 inependently
of the FIT. 
