Specialist Installer of Solar Systems in Oxford and Surrounding Counties

Call us on: 01491 836065

or email enquiries@simssolar.co.uk

The Feed in Tariff (FiT)

The Feed in Tariff (FiT) became available on 1st April 2010.

The scheme has been updated on a number of occasions since its introduction, the most recent changes were implemented on 15 January 2016.

The changes implemented on the 15 January 2016 are regarded by the industry as the most significant in recent years and reflect this Government's policy to reduce the burden of FiT funding on the UK tax payer.

The key features of the revised scheme are:

  • Merging of 0-4kW and 4-10kW bands to a single 0-10kW band
  • Overall reduction in FiT rates across all system sizes
  • To be eligible for the higher FiT rate there is a requirement for energy efficiency Level D to be met before the PV installation takes place i.e., the PV installation cannot be used to raise the energy efficiency of the building for the purposes of claiming the higher FiT Rate
  • Lower and Middle rate of FiT retained
  • Export Tariff retained
  • The introduction of quartely deployment caps for each tariff band
  • FiT payments will continue to be made for a period of 20 years after which they cease.
  • FiT rates will continue to be index linked to the Retail Price Index and will increase in line with inflation on the 1st April each year.

The significance of the imposed deployment cap is that if/when a deployment cap for a particular tariff band is reached, further FiT applications for that period will be carried forward to the next deployment period. If this occurs the FiT rate for the next deployment quarter will automatically be reduced by 10% and carried forward to future years. This is in addition, to the Government's published set of quarterly rate degressions.

Once your solar PV system is commissioned, you should decide which energy supplier you wish to sell your electricity to. Under the scheme, payments are typically made quarterly to the FiT Generator or nominated recipient.

The Table below shows the FiT rate matrix for PV systems completed after 1 January 2017, up to and including systems larger than 250kWp. A full current listing is provided by Ofgem.

Current FiT rates for PV systems

System sizeFiT rates (pence per kWh) Q1 2017 FiT rates (pence per kWh) Q2 2017Deployment cap (MW) Q3 2017
PV system <10kWp 4.11 (higher rate) 4.04 3.90
  0.52 (lower rate) 0.47 0.37
10kWp < PV system <50kWp 4.32 (higher rate) 4.25 4.19
  0.52 (lower rate) 0.47 0.37
50kWp < PV system <250kWp 1.99 (higher rate) 1.94 1.84
  0.52 (lower rate)  0.47  0.37
Stand-alone system 0.47 0.42 0.38
       
Export payment 4.91 4.91 4.91

Sims Solar can advise on all aspects of the new scheme.

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