Feed-in Tariff


The Feed-in Tariff (FiT) is only applicable to renewable electricity. There is a separate Renewable Heat Incentive (RHI) for heat energy. The feed-in tariff is applicable to the following technologies:
  • Hydro
  • Solar PV
  • Wind
  • Biomass
  • Anaerobic Digestion
  • Micro CHP
The feed-in tariff only applies to installations up to 5MW, above this the existing ROC scheme is used. Installations of up to 50kW no longer receive ROCs as of April 2010, those that are in the 50kW-5MW band can opt to receive ROCs rather than the feed-in tariff. The key features are:

  • The Feed-in Tariff is indexed linked (RPI) so will increase each year.
  • The minimum export tariff amount is 3p.
  • Equipment and installers must be MCS (Microgeneration Certification Scheme) accredited to qualify.
  • The Scheme applies to England, Scotland and Wales (not Northern Ireland).
  • Electricity generation using PV, Hydro, Wind, CHP & Anaerobic Digestion up to 5MW are covered.
  • Eligibility of projects completed before July 15th 2009 is not straight forward and depends on RO registration and MCS.
  • The FiT is available to householders, communities and businesses.
  • For individuals the FiT will be income tax free.
  • Multiple technologies at one site will each be eligible for the appropriate FiT.
  • The eligibility of LCBP and other grant funded projects has still not been clarified, and will be dealt with on a case by case basis taking into account state aid rules.
The FiT is funded by a levy on all users of electricity using the CCL - Climate Change Levy (the Renewable Obligation mechanism works in a similar way). It is anticipated that the FiT will add between 1% and 2% to the cost of electricity for every user.

The following tables detail the latest FiT rates as published by Ofgem as they apply to each technology.

PV


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Anaerobic Digestion


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Hydro


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Wind


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CHP


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The Feed-in Tariff for new projects of some technologies reduces year on year, although for the first 2 years it remained the same. This is in line with the policy that the rates will be reviewed from time to time as technologies change. Once a system is registered for the FiT it is locked into the current rate. The tariff is index linked (using RPI) and guaranteed for a set number of years depending on technology. Unlike other countries no cap has been set on the amount of generation that will qualify for the feed-in tariff, but there is an overall budget for the amount of FiT payments that can be made..

Projects of up to 50kW must be installed by MCS accredited installers (this is the same as for the previous LCBP grant funded projects). Installations above 50kW use the same mechanism as is used for ROCs as administered by OFGEM and known as ROOFIT

All systems will need to be registered with OFGEM, for smaller systems (less than 50kW) this process will typically be handled by the installer via the MCS registration process. For larger systems OFGEM administers the ROC system which has been extended to cover the FiT.