Solar PV - Feed in Tariff
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NEWS UPDATE: The Feed in Tariff rate from 3rd March 2012 is 21p/kWh (>4kWp). This will provide up to 10% ROI.
The rate is likely to be reduced at the end of June 2012.
The Feed in Tariff (FiT) is a Government incentive, to encourage both commercial and domestic customers to generate electricity from renewable sources, and reward them for doing so. The FiT came into force on April 1st 2010, the amount paid to the consumer depends on a number of factor, detailed in the table below. This type of scheme has been running successfully in Germany for several years.
To provide an initial boost to the industry the Government has launched the FiT on a very generous basis. The FiT rewards the system owner by paying them for every unit of electricity generated. The electricity generated also supplements the use in the property so the bill payer saves again through needing to purchase less electricity. Over the coming years as installation volumes increase and costs reduce the Government intends to reduce the tariff to new entrants to maintain a constant return on investment. The next planned FiT review is June 2012.
The table below outlines the relevant generation tariff for the type of installation and also outlines the period for which the tariff is guaranteed.
PV Generator Size
| Tariff
| Duration (years)
| <4kW Retrofit
| 21p / kWh | 25
| <4kW New Build
| 21p / kWh | 25
| >4-10kW
| 16.8p / kWh | 25
| >10-50kW
| 15.2p / kWh | 25
| >50kW-150kW
| 12.9p / kWh | 25
| >150kW-250kW
| 12.9p / kWh | 25
| >250kW - 5MW
| 8.5p / kWh | 25
| Standalone PV
| 8.5p / kWh | 25
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Note: The above feed in tariffs are available from 3rd March 2012. The tariffs are likely to reduce from the beginning of July 2012.
MCS Approval
The PV Feed in Tariff is only available to those that have solar electricity panels installed by an MCS approved installer utilising MCS approved products (such as 1ntelligent Energy Solutions). Please be wary, some MCS approved installers sometimes offer customers non MCS approved products, these installations may be lower in cost but are not eligible for the FiT.
Example System
Here is an example of the feed-in Tariff works for a typical domestic or small
commercial solar PV installation.
- 4kW Solar PV installation
- South facing roof of 30degrees
- Little or no shading
SAP based output estimate: 3334kWh
Annual revenue generated would be:-
Feed in Tariff at 21p/kWh * 3334kWh = £700.14 per year
Electricity saving (assuming 50% use and 12p/kWh electricity cost) = £251.72 per
year
Total Saving = £951.86 per year
How do I apply?Before your system is installed you should contact your electricity supplier to inform them that you are having a micro-generation system installed. You should also ask them to fit an export meter, some electricity companies will not fit a meter and will determine your export amount based on a standard rate such as 50%. Ask them to send you all the necessary forms.
Once your installation is complete, Intelligent Energy Solutions will register your system with your distribution network operator (DNO) and on the MCS/Gemserv database.
At this stage you should contact your electricity supplier again and tell them that the installation is complete and that you wish to register for the FiT and they will ask you to complete some forms. After gaining your MCS Certificate for your installation, there are only a few other details that your supplier will need from you. Some companies have an application form, but this will vary from supplier to supplier.
You will need some or all of the following information:
- FiT payment type – usually "Generation and Fixed Export Payments"
- The type of technology, ie Solar PV or Wind Turbine
- The installation date
- Your property details, such as value and number of bedrooms, whether it was a new build or retro-fit
- The installed capacity, this is the peak power (e.g. 1.8kW)
- MCS certificate (for systems below 50kW)
- Make and model of PV panels or wind turbine
- Cost of overall installation
- MPAN (Meter Point Administration Number – this can be found on a utility bill, and on the MCS certificate you will receive). See link for further details
- The installer name, 1ntelligent Energy Solutions Ltd.
- Generation meter make, model and serial number and reading, usually 0
- Export meter make, model and serial number and reading (if applicable)
- Information about your existing electricity supply – the company you are currently with etc
- Details of where you would like the FiT to be paid, ie bank sort code, address and account number.
Your electricity supplier may also require an "installation schematic" – you will find the diagram in the handover pack that we supply. Most energy suppliers have dedicated renewable energy teams that will also be able to assist you with their forms.
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