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Investors in Solar PV Systems Benefit from Feed-in Tariff

Feed In Tariff

Since the introduction of the Feed-in Tariff (FiT) in April 2010, home owners, commercial property owners and communities installing solar PV are paid for all the electricity they generate, including the electricity that they use. This 'clean energy cashback' is in addition to the savings on electricity bills. 

The Department of Energy and Climate Change (DECC) has introduced the Feed-in Tariffs as part of the UK Government's drive to reach the target of 15% of energy coming from renewables by 2020.

If you are eligible to receive the FiT then you will benefit in 3 ways: receiving a generation tariff and an export tariff on top of money saved on electricity bills.

The Feed-in Tariff scheme is changing and installations registered on or after the 15th January 2016 will roll into a new rate which starts from 8th February and runs until 31st March 2016. DECC has said that this is in order to protect the new budget allocation of £100 million. Degression will begin in the second quarter 2016 and following quarters as detailed in the table below.

 FiT Jan 2016

These tariffs are based on the Higher Rate which requires the property to have an EPC Band D or better prior to the solar PV being commissioned.

DECC says that the new rates are designed to offer a return of 4.8%.

A queuing system is to be introduced, meaning that if a particular cap is reached then all new installations will be placed in a queue for when the next cap opens. There is no guarantee that these installations will received FiT payments until they are registered under the following cap, nor is there a guarantee on which the rate they will receive. DECC has still provide clarity on the process to be employed.

Generation tariff

A set rate paid by the energy supplier for each unit (or kWh) of electricity you generate -including those that you use on site. Once your installation is commissioned and you join you will continue on the same tariff for 20 years. 

Export tariff

You receive a further 4.91p/kWh from your energy supplier for each unit you export back to the electricity grid - those that are not used on site and are surplus. Domestic FiT installations are likely to have their export estimated at 50% in most cases until smart meters are rolled out.

Energy bill savings

You make 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.


Contact us today and find out how you can save on your energy bills or call us on 0141 309 5543.

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Ecoliving is a specialist provider and award winner of micro-renewable energy solutions - heat pumps, biomass boilers, combined heat and power (CHP), underfloor heating, solar and wood burning stoves. We also offer service, repair and maintenance.

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T: 0141 309 5543