Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010, the scheme guarantees a minimum payment for all electricity generated by a commercial solar PV system.
About the Scheme
Under this Feed-in Tariff renewable electricity scheme, energy suppliers have to make regular payments to those who generate their own electricity from renewable or low carbon sources such as solar electricity panels (PV). Businesses as well as homeowners are now able to benefit from the Government-led scheme.
The Feed-in Tariff pays a certain pence per kilowatt of electricity generated by the solar PV system which is then used by the owner. Any excess electricity is then fed back into the national grid for which a tariff is also paid.
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 onsite.
Feed-in tariffs are designed so that the average monthly income from your installation will be significantly greater compared to the average 20 year loan. They often help to pay off any excess cost of the system within a matter of years. This means not only does the user pay off this cost with extra money they are earning by generating electricity (therefore not impacting every day costs), but after this is paid off there will still be years of this extra money being generated which can go directly to the user.
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.
You will qualify for the full Feed-in Tariff payments if:
- The technology was installed between 15th July 2009 and 31st March 2010 and you transferred to FITs before 1st April; OR
- It is installed after 1st April 2010 using an MCS* certificated product and installer;
For more detailed information on the Feed-in Tariff including the latest rates see the Government's Energy Saving Trust web site. We direct you to this site as the Feed-in Tariff is often reviewed.
*The Microgeneration Certification Scheme (MCS) is an independent scheme that certificates microgeneration products under 50kW and installers in accordance with consistent standards.