Rates, Eligibility & Tariff Levels

The Feed In Tariff scheme is a system implemented by the government which pays money to homeowners and businesses who create renewable energy. The goal is to promote the use of clean energy to cut CO2 emissions in the UK.

The vast majority of those who have installed a qualifying electricity-generating system can claim the tariff. Current legislation states that those who installed their devices before the 15th July 2009 and didn’t register to apply for Renewables Obligation accreditation before the 31st March 2010, will not be eligible to claim the tariff. However, it is worth noting that the new government may make amendments to this.

Furthermore, the type of system can affect one’s eligibility to claim the tariff. Systems with a power below 50kW must ensure that their system is certified by the Microgeneration Certification Scheme. In addition to this, one must ensure that their system is also installed by a company which is certified by the aforementioned scheme.

In order to claim the Feed In Tariff you must install an eligible renewable energy device  connected to the National Grid. This can be anything from a solar PV panel to a wind turbine, see the complete list of devices and tariff levels below.

Energy Source Scale Generation Tariff Rate (p/kWh)[*] Rate Duration (years)
Anaerobic digestion ≤250kW 14.0 20
Anaerobic digestion >250kW – 500kW 13.0 20
Anaerobic digestion > 500kW 9.4 20
Hydro ≤15 kW 20.9 20
Hydro >15 – 100kW 18.7 20
Hydro >100kW – 2MW 11.5 20
Hydro >2kW – 5MW 4.7 20
Micro-CHP[**] <2 kW 10.5 10
Solar PV ≤4 kW new[***] 21.0 25
Solar PV ≤4 kW retrofit[***] 21.0 25
Solar PV >4-10kW 16.8 25
Solar PV >10 – 50kW 15.2 25
Solar PV >50 – 150kW 12.9 25
Solar PV >150 – 250kW 12.9 25
Solar PV >250kW – 5MW 8.5 25
Solar PV Standalone[***] 8.5 25
Wind ≤1.5kW 36.2 20
Wind >1.5 – 15kW 28.0 20
Wind >15 – 100kW 25.3 20
Wind >100 – 500kW 19.7 20
Wind >500kW – 1.5MW 9.9 20
Wind >1.5MW – 5MW 4.7 20
Existing generators transferred from RO 9.4 to 2027

Export tariff (p/kWh)
All eligible technologies
3.1

Notes:
[*]: Installations registered in FIT Year 2 (1st April 2011 – 31st march 2012). These tariffs are index-linked for inflation. The Energy Regulator Ofgem will publish the updated tariff levels.
[**]: This tariff is available only for 30,000 micro-CHP installations, subject to a review when 12,000 units have been installed.
[***]: These terms are defined as follows:

  • ‘Retrofit’ means installed on a building which is already occupied
  • ‘New Build’ means where installed on a new building before first occupation
  • ‘Stand-alone’ means not attached to a building and not wired to provide electricity to an occupied building

Those who are ready to claim the Feed In Tariff, as well as those planning to do so, should be aware of tariff digression. Tariff digression is the term used to describe the lessening rates of payment as certain technologies become cheaper. The government, with this in mind, have decided to apply tariff digression to systems installed after April 2012, giving you plenty of time to begin claiming Feed In Tariffs at the maximum rate. Those who install eligible systems after April 2012 will receive a slightly lower rate of pay than in previous years, as the technologies required are expected to become more and more affordable, thus keeping the scheme financially efficient for the government in power. Such tariff levels will continue to decrease in time.

Under labour rule, installation dates were expected to effect tariff levels in a fairly severe manner. Those who installed systems before the legislation was passed were set to be paid 9p per kWh, as opposed to 35p per kWh for those who install systems after the passing of the law. Sensing the injustice in this, the Tories promised, prior to being elected, to change this so all those eligible would be paid equally. Whether this will come to fruition remains to be seen. In addition to this, the level of tariff is dependent on the technology used to create the renewable energy and the size of the system.

For companies and homeowners wishing to take advantage of the Feed In Tariff, now is the time to do so whilst tariffs are at their peak.

One Comment

  • Roger Plenty 15th October 2010

    As someone who installed a PV roof about six years ago, I am pretty peeved that I shall only receive 9p per kWh as opposed to the 35p for new installation. A recent report in the press states that Cameron ‘has renaged on a …promise to reward early adapters of solar panels…’ The excuse that he gives sounds pretty feeble to me.

    I never expected to make my fortune with a PV roof. I thought I was being public spirited in taking an early lead for this, for quite a modest return on my investment (about 3% pa, I calculated, at the time). It’s a moot point whether my returns don’t actually go down with these rates. I think that Cameron should honour his promise, and not try to wriggle out of it. Is it any wonder that we don’t trust politicians?

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