Generation TariffYou are here: Home » Clean Energy Cashback (fits)

Feed-in Tariffs became available in Great Britain on 1st April 2010. Under this scheme energy suppliers make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity (PV) panels. The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site. Once you have a micro-generation technology installed you should experience a monthly reduction in your electricity bill and receive an income from your energy provider.

About The Scheme

The scheme covers the following electricity-generating technologies, up to an installation size of 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 (micro CHP)

The tariffs available and the process for receiving them vary, depending on when the technology was installed, and whether the system, and the installer were certificated under the Microgeneration Certification Scheme (MCS).

The MCS accreditation is an independent scheme that certificates microgeneration products under 50kW and installers in accordance with consistent standards. Any commercial or larger scale systems, over 50kW, and all anaerobic digestion installations must apply directly through the Renewables Obligation Order feed-in tariff process for larger installations (ROO-FIT) process as they are not covered by the MCS.

How It Benefits You

If you are eligible to receive FiTs, you will benefit in 3 ways:

1. 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 25 years (for solar electricity (PV)). The generation tariff is also index linked to RPI.

2. 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.

3. 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.

How can you claim payments?

Installed after 1st April 2010 with an MCS accredited product and installer

• You are eligible for full generation tariff and export tariff.
• Contact your energy supplier, and send them your MCS certificate to tell them you are eligible to receive FITs.
• If you install after the 2nd year of the scheme your tariff could be reduced, depending on the installation size.

Installed after 1st April 2010. Non-MCS accredited product and installer

• Systems that are not MCS certificated will not be eligible to receive the FIT generation tariff or the guaranteed FIT export tariff. There is the possibility of receiving generation and export tariffs outside of the FIT scheme if privately negotiated.
• You will still benefit from lower electricity bills. The saving will depend on how much of the electricity you generate is used on-site.