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The Feed In Tariff

Under the government's feed in tariff scheme, you get paid for every unit of electricity your system produces, whether you use it in your home or not.

The feed in tariff is the government's main tool to encourage home owners and businesses to install solar PV systems and produce clean, green electricity.

Although you may have heard that the amounts paid out have dropped since it was introduced in 2010, this has been offset by the advances in solar technology and reduced costs of installation, so you still a return on your investment.

How it works

The feed in tariff is guaranteed by the government for 20 years. You get paid by your electricity company, and the payments you receive are tax free. The amount you are paid is also linked to the RPI, so it will keep pace with inflation over the 20 years.

When you have a solar PV system installed, you'll benefit in three ways;

  1. You'll get paid for every unit of electricity your system produces. This is called the generation tariff. Your electricity provider will pay you the current rate of feed in tariff for every unit of electricity you produce, whether you use it in your home or not. The current rate for installations of 10kW or below (most household systems) is 4.32 pence for each kWh you generate.
  2. You'll get paid for any electricity you produce but don't use. This is known as the export tariff. Most houses don't use all the electricity they produce, particularly in the summer, so any electricity left over is exported into the grid. You'll get paid 4.91 pence for every unit you export by your electricity supplier. At the moment, most suppliers don't have a way of measuring how much electricity you use and how much you export, so they assume you'll use half of what you produce, and pay you the export tariff for the rest.
  3. Your electricity bills will go down. The electricity your system produces will help power your home during daylight hours, reducing your electricity bills and protecting you from rising electricity costs. Small changes to your household habits like using dishwashers and washing machines during the day can have a significant effect on this, saving you even more money.

How we help

We help all our customers through the process of claiming the feed in tariff, and ensure that they're set up to start receiving payments from their electricity provider.

When we install your system, we'll register it with the Microgeneration Certification Scheme (MCS), and send you a certificate confirming your system meets the MCS standards. We'll then help you with the necessary paperwork to register for the feed in tariff with your electricity provider, who will then let you know what you need to do in terms of providing meter readings, and when you can expect payment. We've got years of experience with this process, and love hearing from our customers when they receive their first feed in tariff payment!

The future of the feed in tariff

The Feed In Tariff is an ongoing commitment from the Government. Expenditure is controlled by two digression mechanisms. The first occurs every quarter whereby the tariff reduces by 1.75%. The second is a capacity trigger set at around 50MW per quarter. If volumes exceed his exceeds a trigger point in any three month period, the tariff is reduced by 10%.  This is to keep the cost of the Feed In Tariff within the Government's predetermined budget. to date volumes have not exceed the capacity trigger in the 0-10kW band.

This means to ensure you receive the highest tariff, the best time to install is now.

To arrange your free, no obligation survey, just call us today on 0131 623 0093 or 07740 506693, or click here.

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