Your guide to the feed-in tariff

If you are looking to reduce your carbon footprint and take control of your energy bills, then the installation of a solar PV system could be just the solution you are searching for. With the introduction of the Feed-in Tariff (FIT), going green has become a viable option for many homeowners and businesses. The FIT allows those creating their own energy to be rewarded for not only the energy they feed back to the national grid, but also for the energy they use.

Why has the FIT been set up?

The UK has made a commitment to generate 15% of its energy through renewable sources by 2020, this is a massive leap from just under 2% in 2009. The Government introduced the Feed-In Tariff scheme in 2010 to encourage more homeowners and businesses to consider installing a microgeneration system by which they would generate some of their own energy requirements.

What are the benefits of the FIT?

By signing up to the FIT, you could be awarded with three potential benefits:

1)      You will receive a payment for the energy you produce, whether you use it or not.

2)      You will see a reduction in your energy bills, as you start to use the energy you are producing.

3)      You will also receive a payment for the energy you export back into the grid.

Are there any limitations?

You will need to ensure that your solar system is up to the capacity of five megawatts (no more than five megawatts) to be eligible for the FIT payments.

Households, businesses and community projects are all welcome to apply for the FIT as long as their system is 5WT and below, meaning that the majority of properties throughout England, Scotland and Wales are all welcome to sign up. All systems installed after July 2009 are eligible for the FIT payments.

Your system will have to comply with any necessary planning constraints and fit in with the regulatory and legal obligations (this will need a proven confirmation). For all microgeneration systems below 50kW, the system components and installer will need to be certified by the Microgeneration Certification Scheme (MCS). It is also worth you noting that all companies with MCS accreditation are also members of the REAL scheme.

When connecting to the grid, you will also need to seek the approval from the Distribution Network Officer (DNO) who is responsible for that part of the grid. If you have any queries regarding any of these points please do not hesitate to ask a member of our team.

As from April 1st 2012, you will need to ensure that your home meets the energy efficiency requirements of level D and above to qualify for the FIT payments, if you are unsure, please give us a call and we can assess your energy efficiency rating.

How much could I receive from the FIT payments?

From the 31st October 2011 the Government has set the following tariffs* for the solar PV systems:

System type

System size

Generation tariff received until either 12th December 2011 or 3rd March 2012**

General tariff rate received from 3rd March 2012 until 1st July 2012

Retrofit

4kW or less

43.3p/kWh

21.0p/kWh

New build

4kW or less

37.8p/kWh

21.0p/kWh

Retrofit & new build

4kW – 10kW

37.8p/kWh

16.8p/kWh

Retrofit & new build

10kW – 50kW

32.9p/kWh

15.2p/kWh

Retrofit & new build

50kW – 150kW

19.0 p/kWh

12.9p/kWh

Retrofit & new build

150kW – 250kW

15.0 p/kWh

12.9p/kWh

Retrofit & new build

250kW – 5MW

8.5 p/kWh

8.5p/kWh

Stand-alone (not attached to a building and not wired to provide electricity to an occupied building)

Up to 5MW

8.5 p/kWh

8.5p/kWh

*Information courtesy of the DECC (Department of Energy and Climate Change)

** The amount currently received in FIT payments is dependant upon whether the Government win or lose their appeal with the Supreme Court. If they lose their appeal, the FIT rate will be 43p for those who have installed between 12th December 2011 – 3rd March 2012. If however they win their appeal, the FIT rate will be 43p until 1st April 2012, then will drop to 21p for the remaining 25 year period.

How do I sign up to the FIT?

After your installation has been completed by your MCS accredited solar PV installer, they will provide you with all details that you will require to making your FIT application.

For more information, or to speak to one of our specialist advisers, please don’t hesitate to contact us on 0845 3024779 or email us at: solar@jhssolarsolutions.co.uk.

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