Solar PV Feed In Tariffs (FiTs) Summary

  • The level of feed in tariff paid to electricity producers is determined by by the size of the system and is set by Ofgem.  Ofgem review the amount paid for each unit of electricity generated on a quarterly basis.
  • Solar PV feed in tariff (FiTs) payments are set in a contract between the producer and the Government. The rate prevailing at the time of installation is set for 20 yrs.  Payments are increased annually based on RPI inflation in the December preceding the start of the new finacial year.
  • Feed in tariff payments are tax exempt for domestic installations.
  • The Government deems that 50% of electricity produced by a domestic solar PV installation is used in the home and the balance “exported” to the national grid. The exported electricity attracts an additional premium of 4.77p for each unit (kWh) exported.
  • All installations must be carried out by an MCS-approved installer, using MCS-approved products to qualify for the FiTs.
  • The installer provides the customer with a certificate to confirm their solar PV installation qualifies for FiTs. The customer provides this certificate to their electricity provider who pays them, on behalf of Ofgem and the Government for the electricity they produce.
  • All electricity sales organisations add a small levy to every unit (kWh) of electricity sold.  This levy funds the FiTs scheme.  So all electricity consumers(domestic & commercial) fund the FiTs scheme NOT Central Government.  The electricity sales companies hold this levy in a nominal account for Ofgem and apply to Ofgem to pay you from it when you claim your FiTs.
  • There are a finite number of domestic and commercial electricity users in the UK this determines the budget available to pay Solar PV Fits. The Dept of Energy Climate Change refer to this as the spending envelope.

If you would like to know more about how you can benefit from the Government incentives to install Solar PV please call us on 01480 819 740, email us via our website contact form or request a call back.

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