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Solar PV and Feed-in Tariffs

Feed-in Tariffs (FITs) are now available in Great Britain and came into effect as of 1st April 2010. This scheme requires energy suppliers to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources, such as solar electricity (PV) panels or wind turbines.

Solar PV

Solar photovoltaic cells (Solar PV) known as pv solar panels which produce electricity from daylight through a process called photovoltaic streaming. "Photo" refers to light and "voltaic" to electricity

How does solar PV work?

PV cells are panels you can attach to your roof or walls. Each cell is made from one or two layers of semiconducting material, usually silicon. When light shines on the cell it creates an electric field across the layers. The stronger the sunshine, the more electricity is produced.

PV cells come in a variety of shapes and colours, from grey "solar tiles" that look like roof tiles to panels and transparent cells that you can use on conservatories and glass.

The strength of a PV cell is measured in kilowatt peak (kWp). That's the amount of energy the cell generates in full sunlight.

The benefits of solar electricity

Cut your carbon footprint: solar electricity is green, renewables energy and doesn't release any harmful carbon dioxide (CO2) or other pollutants. A typical home PV system could save around 1200 kg of CO2 per year - that's around 30 tonnes over its lifetime.

Cut your electricity bills: sunlight is free, so once you've paid for the initial installation your electricity costs will be greatly reduced. A typical home PV system can produce around 40% of the electricity a household uses in a year.

Sell electricity back to the Grid: if your system is producing more electricity than you need, or when you can't use it, someone else can use it - and you could make a bit of money.

PDF file icon  Buyers guide to solar PV
  (1350KB, 7 pages)

PDF file icon  Frequently asked questions about solar PV
  (24KB, 4 pages)

Feed In Tariff (FIT)

If you are eligible to receive the FIT then you will benefit in 3 ways:

Solar panel

Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).

Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.

Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Diagram how scheme will work

The scheme covers the following electricity-generating technologies, up to 5 Mega Watts:

  • Solar electricity (PV) (roof mounted or stand alone)
  • Wind turbine (building mounted or free standing)
  • Hydroelectricity
  • Anaerobic digestion
  • Micro combined heat and power (mCHP) (limited to a pilot at this stage)

PDF file icon  Frequently asked questions on Feed In Tariffs
  (390KB, 14 pages)

Type of technology Size Current Tariff level (p/kWh) till March 2012 New Tariff as of March 2012
Solar electricity (PV) ≤4 kW (retro fit) 41.3 21.0
Solar electricity (PV)  ≤4 kW (new build) 36.1 21.0
Solar electricity (PV) >4 - 10 kW 37.8 16.8
Solar electricty (PV) >10- 50 kW 32.9 15.2
Wind ≤1.5 kW 35.9 21.0
Wind >1.5 - 15 kW 28.1 21.0
Micro CHP ≤2kW 11.0 12.0
Hydroelectricity  ≤15 kW  19.9 21.0

Tariff levels vary depending on the scale of the installation and the tarriff rate at time of installation. It is expected that the rates will decrease each year for new entrants into the scheme. All generation and export tariffs will be linked to the Retail Price Index (RPI) which ensures that each year they follow the rate of inflation. For more information visit the Energy Saving Trust website.

Important solar PV update

The UK Government appeal against a High Court decision- ruling that the Solar PV FITs Fast Track review was unlawful in January 2012- was unsuccessful. However, this is not the end of the matter as the UK Government is currently seeking permission to appeal the decision to the Supreme Court. In light of this they cannot rule out the possibility that lower tariffs (21p) could be applied to solar PV installations which became eligible for FITs on or after the proposed reference date of 12 Dec 2011. As such there is still uncertainty over which tariffs householders will get if their eligibility date is on or between 12 Dec 2011 and 2 March 2012.

Key advice for householders

Regardless of what some installers may tell householders there is no guarantee that householders will get the higher (43.3p/kWh) rate if their eligibility date is on or between 12 Dec 2011 and 2 March 2012. Customers who install on the assumption of the higher rate do so at their own risk.

The actual tariff applied to installations with an eligibility date of on or between 12 Dec 2011 and 2 March 2012 won’t be confirmed until the legal process has been completed. The UK Government had 28 days from the judgment to lodge an appeal with the Supreme Court.

UK Government have confirmed that should they win their appeal then the FIT rate they finally decide upon will NOT be lower than 21p/kWh.

Householders should therefore plan on the basis that at the very least they will get 21p/kWh

Householders with an eligibility date of 3 March 2012 until the date of the next tariff change (under consultation) will get 21p/kWh though for installations with an eligibility date of 1 April 2012 onwards there is a condition for energy saving measures

Solar PV installations with an eligibility date of 1 April onwards will only get the 21p/kWh if they provide evidence that the property meets EPC Band D level or better. If this evidence is not provided then the applicable tariff is 9p/kWh.

Please note tariffs might be changed again come July – consultation 2A just opened on options. Comments due by 3rd April. 

There is also to be a review of the rates for other renewables (CHP, renewables, AD and wind) – consultation 2B closes 26th April.

Ive been offered solar PV for free should I take it?

With the introduction of Feed-in Tariffs (FIT) there are a number of organisations offering customers free solar PV panels. Typically, the company installing the solar PV panels will receive the income from the generation and export tariffs for the site, while the customer will benefit from reduced energy bills through the electricity generated on the site.

Consumer guidance on free solar solar PV offers.