Feed-in Tariffs

The Feed-in Tariffs (FITs) scheme is a UK Government scheme designed to encourage uptake of a range of small-scale renewable and low-carbon electricity generation technologies.

Under FITs, you could be paid for the electricity you generate if you install or have installed an eligible system like solar PV, a wind or hydro turbine, or micro CHP.

The UK Government's Department of Energy and Climate Change (DECC) makes the policy decisions about the FITs scheme. The energy regulator Ofgem E-Serve administers scheme.

Certain energy suppliers (also known as FITs licensees) handle FITs scheme applications and will make the FITs payments. The large energy suppliers are required by law to be FITs Licensees; smaller suppliers are not required by law to do this but many have opted to offer this service anyway. Visit Ofgem for a list of FITs Licensees.
 

How much could I receive through FITs?

If you are eligible to receive FITs payments you will benefit in three ways:

  • Generation tariff: your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 20 years) and are index-linked.
  • Export tariff: your energy supplier will pay you a further rate for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50 per cent (75 per cent for hydro) of the electricity you generate (only systems above 30kWp need to have an export meter fitted, and a domestic system is unlikely to be that big).
  • Energy bill savings: you will be making savings on your electricity bills because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

You can estimate how much money you could earn through FITs using our Solar Energy Calculator for Solar PV or our Cashback Calculator for Wind, Hydro or micro CHP.

 

What technologies can I claim FITs support for?

Most domestic renewable and low carbon electricity-generating technologies qualify for the scheme, including:

For you to qualify for the FITs scheme, the installer and the products you use must both be certified under the Microgeneration Certification Scheme (MCS), except hydro and anaerobic digestion which have to go through the ROO-FIT process. The tariffs you receive will depend on both the eligibility date and, for solar PV, your property’s Energy Performance Certificate (EPC) rating.

Refer below for definition of the eligibility date.

 

How do I apply for FITs?

There are two routes for application.

The MCS route for application

The MCS route is for PV or wind installations with a declared net capacity (DNC) of 50kW or less and micro CHP installations with a total installed capacity (TIC) of 2kW or less. This will cover most applications. Make sure that both the product and installers are MCS-certified. You should be issued with an MCS certificate once your installer has registered your installation on the MCS database. 

We recommend that you contact your FIT supplier (also known as the FIT licensee) as soon as possible (ideally before your system is commissioned) to confirm the requirements and make sure you know exactly what information they require from you and when they need to receive it by. It is particularly important if you are considering installing solar PV as your will be required to provide an EPC of your property, proving that you have achieved a band D or above in order to be eligible for the higher tariff rate.

Once your system is commissioned, tell your chosen FIT licensee that you wish to register for FITs and send them:

  • a completed application form,
  • the MCS certificate,
  • for solar PV, the Energy Performance Certificate that shows your home has an energy efficiency rating band D or better. The EPC will need to be dated on or before the commissioning date of your PV system.

​Your FITs licensee will:

  • cross-reference your installation with the MCS database and undertake other eligibility checks;
  • confirm your eligibility and the date you are eligible for payments from. This will be the later of the following, the date the application for FITs is received by the FITs Licensee or the first day of the quarter the installation qualifies under.
  • add you to the Ofgem Central FIT Register, which records all installations in the FIT scheme. The number of FIT applications that can be approved in each quarter is limited by a cap. If your application is received after the cap is reached, it will be queued (ordered by the date and time of your MCS certificate date). You will receive the tariff set for the quarter your installation eventually qualifies in).

Being given a place in the queue does not guarantee eligibility for a particular tariff or eligibility for support under FITs as it will depend on the volume of applications ahead of you.

  • agree with you if and when you will need to provide meter readings and when they will make FIT payments to you – these will form part of your statement of FIT terms.

The ROO-FIT route to accreditation

The ROO-FIT accreditation process is for all other applications. More guidance on this process can be found on Ofgem's website.

 

Eligibility date

The ‘eligibility date’ is the date from when FIT payments can be made and will be the later of the following:

  • The date an application is made to a FIT licensee;
  • The start of the period (normally a quarter) that the installation falls into.

The first period runs from 8 February 2016 to 31 March 2016;

The period (normally a quarter) an installation falls into will depend on its MCS certificate issue date and time; if a cap is met, the application will be placed in a queue for the subsequent tariffs (in the next or a later quarter depending on placement in the queue).

A place in the queue does not guarantee eligibility for a particular tariff or eligibility for support under FITs as it will depend on the volume of applications ahead.

 

The queuing system

An application’s place in queue will depend on the time and date of the MCS certificate.

Ofgem will publish information about deployment levels and when a cap is reached on their website.

FIT Licensees will inform MCS customers if a cap is reached. If your application is put on hold, Ofgem will notify you of this and will let you know once the relevant cap opens and your application is being reviewed.

To have the best chance of securing a higher FITs tariff it is sensible to send your FITs application to your chosen FIT Licencee as soon as you can.  This will mean you are as high up the queue as possible.

 

Tariffs

Once you are receiving FIT payments, you will receive payments for 20 years and the rate you get will change in line with inflation in accordance with the Retail Price Index (RPI).

The tables below summarise the latest tariffs available for each technology.

At the start of each calendar quarter, Ofgem will publish tariffs on their website.These will reflect any reductions in tariffs as a result of deployment in the previous quarter and, once a year on 1 April, an inflationary (RPI) adjustment when applicable. It is not possible to say what future tariffs will be for certain as they will be subject to whether caps within previous quarters are reached.

 

 

 

 

QUARTER 1

Generation tariffs for installations with an eligibility date between 1 April 2016 and 30 June 2016

QUARTER 2
Generation tariffs for installations with an eligibility date between 1 July 2016 and 30 September 2016

(if UNAFFECTED by a deployment cap)

(if AFFECTED by a deployment cap

Technology

Capacity

Higher rate tariff p/kWh

 

Higher rate tariff p/kWh

Higher rate tariff p/kWh

Solar PV

<10kW

4.32

4.25

3.83

 

10-50kW

4.53

4.46

4.01

Wind

<50kW

8.46

8.39

7.55

Hydro

<100kW

7.68

7.66

6.89

Micro-CHP

<2kW

13.45

 

 

Please note that this table does not contain definitive tariff values but estimated ones for quarters other than that covering the period 1 April to 30 June 2016. The tariff you receive will be confirmed to you by Ofgem or your FIT licensee if you are eligible for FITs.

For solar PV, evidence of a property’s Energy Performance Certificate (EPC) rating is required when applying to the FITs scheme. If the property is a band A to band D the higher tariff rate will apply. Properties that are band E or lower will receive the lower tariff rate. Figures in the tariff table above show only the higher rate tariffs. Solar PV applications submitted before 9 May need to provide an EPC that was issued on or before (and not after) the commissioning date of the system. Solar PV applications submitted on or after 9 May need to provide an EPC that was issued before (and not on or after) the commissioning date of the system.

 

Export tariff of 4.91 p/kWh for all installations with an eligibility date on or before 31 March 2017.

For site-specific calculation and bespoke report showing estimates of how much you could earn through FIT for solar PV, try our Solar Energy Calculator.

Further information about the scheme is also available on Ofgem's FITs pages.