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.
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
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
|System Size||FiT tariffs
|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|
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.
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.
Ofgem regulates the UK’s FiT scheme. Find more information on the Feed-in Tariff on their website:
In addition, the Energy Saving Trust website offers good insights on the solar PV Feed-in Tariff.