Feed in Tariff

The Feed in Tariff is a government scheme that allows you to generate a tax-free income from you solar panels. At the new rate, a typical 3kWp system would earn around £600 per year.

What is the Feed in Tariff and how does it work?

The Feed in Tariff is a government scheme intended to reward adopters of green electricity sources by paying them for the amount of energy they produce, even if all of the electricity is used by the household. Energy that is not used is exported to the national grid to be used by other homeowners. If you install an electricity generating technology that utilises a green energy source such as solar power or wind power, then you could receive payments from your energy supplier. Money can be earned from both the amount of electricity generated and the amount exported to the national grid.
Feed in tariff

How much could I earn from the Feed in Tariff?

How much you can earn from the Feed in Tariff depends both on the size of the system and when it was installed. The larger the your solar panel system, the more electricity it will generate, thus, earning larger payments through the Feed in Tariff scheme. However, a larger system will cost more to install and is limited by the size of your roof.

There are two rates that you need to know when you are receiving feed in tariff payments:

  • Generation Tariff – This is a fixed rate and is paid per unit of electricity you generate. Once you are registered for the Feed in Tariff, this is guaranteed for 25 years. The current rate is 21p/kWh.
  • Export tariff – This is paid on top of your generation tariff at a rate of 3.1p/kWh. This is paid for each unit of electricity that you feed back onto the national grid. Currently this isn’t metered so it is estimated at 50% of the total electricity generated. At some point, it is expected that smart meters will be installed in order to make a more accurate reading of what you actually export.

Typical earnings from a 3kWp system would be:

  • Generation tariff – £530/year
  • Export tariff – £40/year

Can I take advantage of the Feed in Tariff?

Your solar PV panels will qualify for Feed in Tariff payments if:

Having had your solar panels installed by your MCS accredited solar panel installer you need to register for the Feed in Tariff. To do this you need to:

  • Ask your installer to register you on the MCS database and provide you with a certificate to prove your MCS compliance
  • Fill out an application with your chosen Feed in Tariff supplier
  • Send your application along with your MCS certification certificate and Energy Performance Certificate (showing energy efficiency of band D or greater) to your Feed in Tariff supplier.

Once you have done this, your energy supplier will confirm your eligibility to receive Feed in Tariff payments as well as organise when payments will be made and when you need to make meter readings.

rates accurate as of 25/03/2011