Feed-In tariffs (FITs)

Feed-In Tariffs (FIT)FITs are a Government grant scheme designed to encourage the generation of renewable electricity as an alternative to grid electricity, which still predominantly uses fossil fuels. These grants are applicable to both domestic and commercial buildings.

What is eligible?

For most domestic customers the only appropriate technology is solar PVEligible technologies are:

  • Solar photovoltaic (PV) panels
  • Wind turbines
  • Anaerobic digestion
  • Hydro-electricity
  • Micro combined heat & power (CHP)
  • Note: For most domestic customers the only realistic technology is solar PV.

How does it work?

You have your system installed by an MCS (Microgeneration Certification Scheme) approved installer who will ensure that the system is RHI compliant. You then take the following steps:

  1. Ask your installer to register you on the central MCS database. The installer will then send you a certificate confirming MCS compliance.
  2. Tell your electricity supplier that you wish to register for the FIT scheme and send them:
    • a completed application form
    • the MCS certificate
    • for solar PV, the Energy Performance Certificate that shows your home has an energy efficiency rating band D or better.

Your electricity supplier will:

  • cross-reference your installation with the MCS database and undertake other eligibility checks.
  • confirm your eligibility and the date that you are eligible to receive payments
  • add you to the Ofgem Central FIT Register, which records all installations in the FIT scheme
  • agree with you if and when you will need to provide meter readings and when they will make FIT payments to you. These will form part of your statement of FIT terms.

For most domestic installations planning permission is not required as the installation is covered under ‘permitted development’.  Commercial installations are likely to require planning permission.

what might I earn?

For most domestic customers the only appropriate technology is solar PV Your overall income is comprised of three elements:

  • Generation tariff: your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 20 years) and are index-linked.
  • Export tariff: you will get a further payment from your energy supplier for each unit of electricity you export back to the grid, so you can sell any electricity you generate but don't use yourself. This rate is the same for all technologies. It is estimated as being 50% of the electricity you generate (systems above 50kWp need to have an export meter fitted, but a domestic system is unlikely to be that large).
  • Energy savings: you will be making savings on your electricity bills because generating electricity to power your appliances means that you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending upon how much of the electricity you use on site, and when you use it.
  • Battery storage systems can be used to store surplus energy for use when the system isn't generating, e.g. during the night.

The exact amount you earn depends on the technology installed and the size of the installation.  Contact us for more details.

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