Feed In Tariff
The Feed in Tariff (FIT) is a mechanism to provide financial incentives to people or businesses installing renewable energy systems including solar PV. The scheme offers a payment for every unit (kWh) of electricity generated by your system. These payments are backed by legislation and are paid for by electricity supply companies in order to help the UK meet its obligation to reduce carbon emissions. There have been many changes to the scheme since starting in April 2010, however some stability has finally been achieved. Source Solar are up-to-date with all changes and can provide you with help and advice on the application process.
What are the benefits?
The FIT has allowed many people to invest in small scale, low carbon electricity, in return for a guaranteed payment from an electricity supplier of their choice for the electricity they generate and use. As well as this, there is a guaranteed payment for unused surplus electricity they export back to the grid.
There are three financial benefits from FITs:
- Generation tariff – the electricity supplier will pay you for each unit of electricity you generate.
- Export tariff – if you generate electricity that you don’t use yourself, you can export it back to the grid. You will be paid for exporting electricity as an additional payment on top of the generation tariff.
- Energy bill savings – you won’t have to import as much electricity from your supplier because a proportion of what you use you will have generated yourself, reducing your energy bill.
Based on the current FIT rates, an ideal domestic solar PV system in Cornwall (facing south with no shading and a roof pitch of 30 degrees) fitted with a solar installation of 4kWp will provide the following:
|Electricity bill savings||£334.78|
|Total annual savings||£1081.58|
|CO2 savings||1.78 tonnes per year|
A 4kWp solar PV system installed by Source Solar starts at around £7,000 meaning your project will return its investment in year 7.
The estimated benefits shown above are based on the UK Governments Standard Assessment Procedure which, while on the conservative side, is a good indication of performance. Installations in Cornwall and the South West will outperform this by around 10-20% depending on the weather.
Requirements to receive payments
You will qualify for the Feed-In Tariff if the following applies:
- The solar panels have MCS certification and are installed by an MCS approved installer – Source Solar has this certification and is an approved installer.
- The building which receives the solar electricity has an Energy Performance Certificate (EPC) reaching a level D or above. The installation of solar PV will increase your properties EPC level. We can advise on this subject when we survey your property, and provide a free EPC when we install your system if required. If your property already has one then you will need to provide this to your FIT supplier.
How do I apply?
Source Solar can help with the application process.
You will need to choose a licensed FIT provider (usually your current energy provider) and they will provide you with the necessary forms. Once completed, you return these forms with a copy of your MCS certificate (supplied by us), an Energy Performance Certificate and some further documentation which varies depending on supplier.