Like the Renewable Heat Incentive (RHI) Scheme for heat generation, the Government’s FIT Scheme offers ongoing payments to homeowners for generating energy (electricity in this case) at home.
The FIT Scheme can benefit you in three ways:
- Generation Tariff: You can receive money for any electricity generated, even if you consume this at home. The tariff level is guaranteed for up to 20 years and is index-linked (i.e. will increase in line with inflation).
- Export Tariff: You can receive 4.77p/kWh for any surplus energy that you export to the grid. At present this is not measured, but is estimated at 50% of energy generated.
- You will see lower electricity bills, as some of the electricity you use will be generated by you, rather than imported from the grid. Obviously, it makes sense to use electricity-guzzling appliances (washing machine, iron, kettle, etc.), at times when the sun is shining and you are generating most electricity, to achieve the greatest savings.
The following technologies are eligible for FIT Schemes:
- Solar electricity (PV) – roof mounted and stand alone
- Micro Combined Heat and Power (Micro-CHP)
- Wind turbines – building mounted or stand alone
- Anaerobic Digesters
Since the FIT Scheme was first launched in April 2010, the price paid by the Government for electricity generated has dropped significantly, but so too has the cost of installing the relevant technologies.
You can see the full list of tariffs available at the ofgem site.
Below are those currently available:
|Total capacity (kW)||Generation tariff (p/kWh), with eligibility date* of 1/10/14 - <1/1/15||Generation tariff (p/kWh), with eligibility date of 1/1/15 - <31/3/15|
|<4kW (new build and retrofit)||
14.38 (higher rate)
12.94 (medium rate)
6.38 (lower rate)
|4-10kW||13.03; 11.73; 6.38||12.57; 11.32; 6.38|
|>10-50kW||12.13; 10.92; 6.38||12.57; 11.32; 6.38|
The tariff period is currently 20 years for solar PV.
To be eligible for the higher rate generation tariff, you will need to be able to provide evidence of your home being Energy Performance Certificate (EPC) band D or higher.
*Eligibility date is generally when the FIT supplier receives a valid FIT application…units generated after the installation date but before the eligibility date may not be paid, so it’s worth getting all of the relevant information to the FIT supplier as quickly as possible.
Hydro, wind and micro-CHP tariffs:
|Technology||Tariff Band (kW Capacity)||Tariffs 1/10/14-31/3/15|
|>15 to 100||19.72p/kWh|
|>1.5 to <15||16p/kWh|
|>15 to <100||16p/kWh|
The tariff period is currently 20 years for hydro and wind, 10 years for micro-CHP.
All technologies and installers need to be certified under the MCS (Microgeneration Certification Scheme), except for micro and hydro generation, which must go through the ROO-FIT process.
Documents to send to your FIT supplier once your technology has been installed:
- Completed application form
- MCS certificate
- EPC showing your home has a rating of band D or higher (solar PV only)
Your FIT supplier will then check your eligibility and add you to the Ofgem central FIT register, which records all installations on the FIT scheme. They will also discuss when you need to provide meter readings, and when you will receive payments.
It is now a requirement of the scheme that you keep at least 1 year’s records of any electricity you have generated and FIT payments you have received.
The FIT Scheme is available in England, Scotland and Wales. For information about funding available in N. Ireland, take a look at our regional variations section.