The Feed in Tariff (FIT)
Money from the Sun
The Feed in Tariff (FIT) means you get tax-free payments for every unit of electricity you generate, whether you use it or not. In practice, you not only save money on your electricity bill, you make money because you’re paid for contributing to the UK’s energy resources as a whole.
FIT was introduced by the Government in April 2010 to encourage the growth of low-carbon generating technologies. The rewards have been generous to spark rapid consumer adoption of clean energy. Although the tariff has been reduced recently, it still contributes roughly 50% of the financial benefit of installing PV solar panels, largely because the cost of installation has dropped significantly in the past few years. Once installed, your FIT rate is fixed for 20 years. Effectively, the earlier you take up Solar PV, the greater the benefit.
The FIT rates vary depending on the size of the PV Solar Panel installation:
|System Size (kWp)||Generation Tariff
1st July – 30th September 2017
|0 – 10 kWp||4.07p/kWh|
|>10 – 50 kWp||4.29p/kWh|
|>50 – 250 kWp||1.94p/kWh|
|>250 – 1000kWp||1.59p/kWh|
|Stand – alone||0.29p/kWh|
How FIT works
Solar benefits you in three ways:
If your system is smaller than 30kWp then you’ll be paid ‘deemed export’. This is where your energy supplier simply assumes you’re going to use half of the energy you generate, so they pay you as if you’ve exported half, even if you’ve used it all. This is why battery storage is becoming so popular as everyone aims to use as much of the generated energy as possible.
How do I get FIT?
You just have to fill out an application and send it to your energy supplier. Cornwall Solar Panels will help you with this. After that, one of the best things about the process is that you don’t have to do anything once you’re set up. Your energy supplier will make the FIT payments to you. (Large energy suppliers are required by law to provide them, smaller suppliers are not but many have opted to offer them anyway.)
To qualify for FIT, the installer and the products you use must both be certified under the Microgeneration Certification Scheme (MCS). The tariffs you receive depend on the eligibility date and, for Solar PV, your property’s Energy Performance Certificate (EPC) rating.
Cornwall Solar Panels are MCS accredited and use MCS accredited equipment for your installation.