Feed-in-tariffs

Feed-in tariffs

The Feed-in Tariff (FIT) scheme was set up by the government to promote small-scale renewable and low-carbon electricity generation. It works by rewarding customers who create their own ‘green energy’ – for example through solar panels – by giving them back money on the energy they generate.

As a smaller energy supplier, we are not required by law to support this scheme, but we offer it anyway, so we can give our customers the benefits of feed-in tariffs.

The government is closing the scheme for new registrations in April 2019, but we will continue to support existing members who want to switch to us from another FIT licensee.

Benefits of the FIT scheme

The FIT scheme exists to promote renewable energy and to help the UK energy market reach a target so that 15% of all energy produced is renewable, by 2020.

The three major benefits for you are:

  1. You receive a payment for all the electricity you produce
  2. You receive a payment for all the electricity you put back into the grid
  3. You reduce your bills by generating some energy for yourself

It’s very difficult to be completely self-reliant when it comes to energy. But by investing in your own energy generation, you can produce some of the energy your home needs and make money by sending energy to the national grid for other people to use, too.

Technologies which qualify for the FIT scheme

The following technologies are eligible:

  • Solar photovoltaic (usually called PV) panels with a total installed capacity (TIC) of 5MW or less.
  • Wind with a TIC of 5MW or less.
  • Hydro with a TIC of 5MW or less.
  • Anaerobic digestion with a TIC of 5MW or less.
  • Micro combined heat and power (CHP) installations with a TIC of 2kW or less.

Payments and eligibility

For you to qualify for the scheme, the installer and the products you use must both be certified under the Microgeneration Certification Scheme (MCS), except hydro and anaerobic digestion which have to go through the ROO-FIT process.

The tariffs you receive depend on both the eligibility date and, for solar panels, your property’s Energy Performance Certificate (EPC) rating. The UK Government’s Department for Energy and Climate Change (DECC) makes the key policy decisions on FITs. The energy regulator Ofgem administers the scheme.

Eligibility Dates

The eligibility date is the date from which an installation becomes eligible for FIT scheme payments. For most renewable electricity systems (with a declared net capacity of 50kW or less), this will be the date we receive your application for FITs.

This needs to be after you have already installed your renewable electricity system not before.

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