Feed-in Tariffs
What is the Feed-in-Tariff?
The Feed-in Tariff is an income paid to householders who generate electricity by installing solar panels – whether they use it to power their homes or it gets pumped back into the national grid.
It was introduced because the Government wanted to reduce the UK’s reliance on fossil fuels and increase our use of renewable energy sources like solar power. Offering payments to those who invest in renewable technology gives a financial incentive as well as an environmental one.
Am I eligible for the Feed-in Tariff?
You will only be eligible to receive the Feed-in Tariff, if your system has been installed by an MCS (Microgeneration Certification Scheme) accredited installer, like HBH Solar.
If the application is received after 1 April 2012 then the new proposed rate of 21p applies but only if the property meets the minimum energy efficiency requirements. If not, then this drops to 9p per kWh.
How are the payments made?
The Generation Tariff – Your energy supplier will pay you a set rate (the proposed figure is 21p for systems below 4kWp) for every kWh you generate, even though you are using it in your own home.
The Export Tariff – For any electricity that you generate, but don’t use, your electricity provider will pay you an extra 3.1p per unit, on top of the generation tariff. Most utility companies can’t measure this, so they assume that you will use 50% of the units you produce and pay you for the rest.
Reduced energy bills – Electricity generated by your solar panels feeds directly into your own house, so you will make savings on your electricity bills by not buying as much from your energy provider.
receive the Feed-in Tariff.
Who pays the Feed-in Tariff?
It is the energy suppliers themselves, rather than the Government, that pay you the Feed-in Tariff payments, with the ‘big six’ energy suppliers required by law to provide these payments. Some smaller electricity suppliers may not offer the Feed-in Tariff payments as it is not compulsory for them, although many choose to do so. A list of Feed-in Tariff suppliers can be found on the Government’s OFGEM site.
What happens to my payments if the Feed-in Tariff changes?
The Feed-in Tariff that is in place when your system is registered is fixed for 25 years, although it will increase with inflation. This means that any changes to the Feed-in Tariff introduced after this time will not affect your payments.
