The Solar Feed in Tariff (FiT) scheme was introduced in April 2010 to encourage the deployment of solar PV and other renewable energy technologies.
There are three parts to the FiT.
- A generation tariff is paid for each kWh (unit) of electricity generated, irrespective of whether the electricity is used on site or exported to the grid. Payments are guaranteed for 20 years and rise with inflation, once an installation is approved.
- An export tariff is paid for every kWh that is not used on site and exported to the grid. The export tariff is also index linked and rises with inflation. For systems smaller than 30 kW, it is assumed that half of the electricity generated is exported so it is not necessary to install an export meter.
- Free electricity. Electricity generated may be used free of charge on site, so that electricity bills fall by between 9p/kWh and 16p/kWh depending on your tariff.
For current FiT rates please see the Ofgem website.
FiTs are available for eligible systems up to 5MW in size. The tariffs do not apply to systems above 5MW.
The FiT rates are reduced on a quarterly basis.
For a solar PV system to qualify for the standard or multiple installation rates, the building generally must have an Energy Performance Certificate of Level D or above before the PV system has been installed. Where a building does not meet this requirement, the installation qualifies for the lower tariff.