How does the Feed-In Tariff work?
If you are eligible to receive the Feed-In Tariff you will benefit in three different ways. Not only will you receive a payment for the Generation tariff and the Export tariff, you’ll also reap big savings on your energy bills.
By generating the electricity yourself to power your home appliances you do not have to buy all of your electricity from an energy supplier. And the less electricity you use, the more money you’ll make by exporting the generated energy to the power grid.
Generation Tariffs
The generation tariff is a payment made by the energy supplier for each kWh of electricity your installation generates. This rate fluctuates with inflation and will change each year for new entrants to the scheme (except for the first two years), but once you join you will continue to receive the tariff for 20 years, or 25 years in the case of solar PV. The payment received depends on the size and type of technology you’re using rather than being a set rate, and solar PV is capable of producing the most profitable energy figures.
Export tariffs
The export tariff is a bonus payment for every kWh of electricity you generate but don’t use and then export to the electricity grid. The payment has a set ‘floor price’ of 3.1p per kWh, which can be opted out of to negotiate a new price with your energy supplier, that you export back and the electricity supplier then delivers the electricity to another customer. The tariff has been designed as an extra incentive to encourage people that they will still receive money for any surplus electricity they generate.
Who do I receive the payments from?
The money you receive for both the Generation and Export tariff DOESN’T come from the government – it is actually paid by the energy suppliers. The suppliers pass on the cost of the Feed-In Tariff to their electricity customers, essentially making traditional energy consumers pay for your self-generated electricity.
All the costs are spread equally across all the energy companies but there is the option for smaller suppliers to reject tariff customers.
Feed-In Tariff Rates Table
As mentioned previously, the rate of the Generation tariff depends on the technology and the size of the system you have installed. This is how the tariff breaks down dependent on the technology and size.
| Energy Source | Scale | Generation Tariff Rate (p/kWh)[*] | Rate Duration (years) |
| Anaerobic digestion | ≤250kW | 14.0 | 20 |
| Anaerobic digestion | >250kW – 500kW | 13.0 | 20 |
| Anaerobic digestion | > 500kW | 9.4 | 20 |
| Hydro | ≤15 kW | 20.9 | 20 |
| Hydro | >15 – 100kW | 18.7 | 20 |
| Hydro | >100kW – 2MW | 11.5 | 20 |
| Hydro | >2kW – 5MW | 4.7 | 20 |
| Micro-CHP[**] | <2 kW | 10.5 | 10 |
| Solar PV | ≤4 kW new[***] | 21.0 | 25 |
| Solar PV | ≤4 kW retrofit[***] | 21.0 | 25 |
| Solar PV | >4-10kW | 16.8 | 25 |
| Solar PV | >10 – 50kW | 15.2 | 25 |
| Solar PV | >50 – 150kW | 12.9 | 25 |
| Solar PV | >150 – 250kW | 12.9 | 25 |
| Solar PV | >250kW – 5MW | 8.5 | 25 |
| Solar PV | Standalone[***] | 8.5 | 25 |
| Wind | ≤1.5kW | 36.2 | 20 |
| Wind | >1.5 – 15kW | 28.0 | 20 |
| Wind | >15 – 100kW | 25.3 | 20 |
| Wind | >100 – 500kW | 19.7 | 20 |
| Wind | >500kW – 1.5MW | 9.9 | 20 |
| Wind | >1.5MW – 5MW | 4.7 | 20 |
| Existing generators transferred from RO | 9.4 | to 2027 | |
| Export tariff (p/kWh) | |||
| All eligible technologies |
3.1 | ||
Notes:
[*]: Installations registered in FIT Year 2 (1st April 2011 – 31st march 2012). These tariffs are index-linked for inflation. The Energy Regulator Ofgem publishes updated tariff levels. Solar PV rates shown apply from 1 April 2012 for technology installed after 12 December 2011. Between 12 December 2011 and 31 March 2012 new installations are eligible to receive FiT rates prior to the new reduced tariff levels.
[**]: This tariff is available only for 30,000 micro-CHP installations, subject to a review when 12,000 units have been installed.
[***]: These terms are defined as follows:
- ‘Retrofit’ means installed on a building which is already occupied
- ‘New Build’ means where installed on a new building before first occupation
- ‘Stand-alone’ means not attached to a building and not wired to provide electricity to an occupied building
Measuring the energy
Because the tariff payments based on the kWh produced and exported, the energy generated needs to be measured. Three different meters need to be installed to read the three energy flows – generation, import and export.
You will already have an import meter which is used to calculate your energy bills. Some of these are capable of measuring export too, but this needs to be investigated. A generation meter will be provided with whichever MCS certified product you choose to have installed.
However, it’s worth remembering that Smart Meters are soon to become universal and will be able to cope will all of your meter reading requirements.
Further Reading
What is the Feed-In Tariff (FIT)?
What is the future of the Feed-In Tariff?
How do I apply for a Feed-In Tariff?
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I see nothing available to me.
1. I have no wish to generate electricity to feed the British National Grid – nor do I understand how it is possible technically since the connection is one way into my house supply board.
2. The installations are overpriced since the performance of the panels deteriorate yearly and considerably over 25 years.
3. I am still looking for an install price of around £3000 to £4,000 for a minimal panel install.
4. I would comment otherwise that the idea of asking a working class pensioner for large sums of money to install panels for 25 years on, is not likely to produce many take-ups.
5. The cost of cleaning is omitted from an area like Port Talbot where the air is filthy and the air borne pollution the worst you can get outside China and India.
6. The alternative on offer I ticked of renting my roof, I ma still awaiting terms. I have not heard about it at all. Not followed up at all.
I would be interested to hear about a quote for a low price installation of fewer for lighting – what do you think?
Will I get a quote for an OAP within budget and common sense?
The whole idea is to use your energy you produce and any thing that pushes back to grid is a bonus[43.3pence per unit]the inverter that converts your energy from the sun via your solar panels adds an extra 6 volts so that the energy drives back through your consumer unit and you get paid for it.i work for a company that has installed 25 installs since april so trust me they are a great investment.if you the panels are almost self cleaning[as long as you get rain]at worst you would have to hose them down 2x a year.just installed 16 240volt panels for father inlaw at a cost of 14.5 grand 2 months ago .so far he has made £312 plus what he has saved in not buying in from suppliers.to answer your real question small installs like you mention are over expensive and dont generate enough evan to satisfy an oap .my advise is to seek a local installer .never trust someone who comes to your door,they don’t know anything.
Can someone explain to me how the 50% assumed export works in practice? By MY calculations, in order for it to work correctly, you would need to be given 3.1p per unit on the 50% you are estimated to export, BUT to be charged your main rate (~14p) by your main supply company for that amount of electricity, on the basis that your meter has run “backwards” for this amount, and that if they didn’t do this, then you’d be credited twice for the same units. Is that right?