The Solar PV Feed-in Tariff – Domestic & Commercial FiT for Solar PV

The solar PV Feed-in Tariff, known as FiT, is a government scheme that provides a financial incentive to customers installing solar PV solutions.

As part of a wider drive to reduce the UK’s carbon emissions, the Feed-in Tariff encourages customers to install solar and, as a result, lower their carbon footprint.

The Feed-in Tariff pays customers for the solar energy their solar installation generates. FiT payments are one of the primary benefits of installing solar PV.

Customers registered with the solar FiT scheme receive quarterly payments for 20 years.

How does the solar PV Feed-in Tariff work?

The Generation Tariff

The generation tariff pays customers for 100% of the electricity their solar system generates.

As it’s produced, solar generation is metred. Total generation depends on a number of factors, such as output of the system, efficiency of the solar panels, orientation and pitch of the array and any shading factors.

Customers are required to provide quarterly generation metre readings to their FiT provider. Then, readings are multiplied by eligible FiT rate to calculate payments.

For example, a 4kW domestic solar PV array provides:

Total generation: 4,000 kilowatts

Current Feed-in Tariff rate for 4kW systems: 3.93p (09/16)

Annual FiT generation payments: £157

Energy Consumption

Domestic and commercial customers benefitting from a solar PV array replace grid demand for electricity with solar generation. This creates a vast reduction in energy bills.

For example, a 4kW domestic solar system provides…

Total generation: 4,000 kilowatts

Energy savings (assuming 50%  consumption): £320 per year

The Export Tariff

The final aspect of the Feed-in Tariff is the Export Tariff.

Homes and business benefitting from a solar solution receive payment on any unused solar generation.

The Export Tariff is deemed at 50% on most domestic solar installations. However, commercial solar systems may require metring for export. Basically, installing customers receive export payment on 50% of everything generated by their system.

Due to the Export Tariff’s deemed nature, those who can consume in excess of 50% of their generate see the highest benefits from a solar installation.

For example, a domestic 4kW solar PV array…

Total generation: 4,000 kilowatts per year

Current Export Tariff: 5.24p

FiT Export payment: £105 per year

Solar Feed-in Tariff  Rates – 1/07/2018 until 31/09/2018

System Size  FiT tariffs
pence/kWh
Tariff lifetime
in years
Solar PV systems 4kW or Less 3.93p 20
Solar PV systems 4 -10kW 3.93p 20
Solar PV systems between 10-50kW 4.17p 20
Solar PV systems between 50-100kW 1.79p 20
Solar PV systems between 100-150kW 1.79p 20
Solar PV systems between 150 – 250kW 1.79p 20
Solar PV systems between 250kW – 1MW 1.61p 20
Stand-alone solar PV systems 0.12p 20
Solar PV Export Tariff 5.24p 20

The Solar PV Feed-in Tariff – Key Considerations

EPC Band D

A property will need an Energy Performance Certificate rating of  D or higher to receive high band FiT payments.

As a result, it may be a requirement to attain a new EPC or first undertake other home or business improvements.

GreenGenUK is certified to undertake domestic and commercial EPCs. Furthermore, our experience working with efficient technologies mean we can advise on and carry out energy improvements.

Quarterly Digressions

Dependent on the uptake of solar PV, the Feed-in Tariff is subject to quarterly digressions.

In effect, the FiT reduces by around 3% each quarter. This could be an important factor for home and business owners considering solar around times of digression.

More information on the Solar PV Feed-in Tariff

Ofgem regulates the UK’s FiT scheme. Find more information on the Feed-in Tariff on their website:

www.ofgem.gov.uk

In addition, the Energy Saving Trust website offers good insights on the solar PV Feed-in Tariff.