Simply put the Feed in Tariffs scheme is where you get paid for all the electricity you generate and an extra payment for any surplus electricity you send to the national grid. Of course, these payments are an income as well as getting savings by generating your own electricity.
The Feed in Tariffs 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
The benefits that are applicable to you will depend on when you installed your green energy system and whether or not the system and the installer were certified under the Microgeneration Certification Scheme (MCS).
In summary you will get full Feed in Tariffs amounts if:
- The technology was installed between 15th July 2009 and 31st March 2010 and you transferred to FITs before 1st April; OR
- It is installed after 1st April 2010 using an MCS certificated product and installer;
What is Microgeneration Certification Scheme?
MCS is a scheme that certifies both products and installers to ensure standards are maintained. In order to qualify as an MCS installer 
a company must have a Quality Management Systems with built in consumer protection and be audited annually.
How the Feed in Tariffs scheme works
If you are eligible to receive the Feed in Tariffs scheme then you will benefit in 3 ways:
1. Generation tariff – a fixed amount that is paid by your energy provider for each unit of electricity you generate. This rate is fixed when you join the scheme for 25 years.
2. Export tariff – an additional amount that you will receive for each unit you provide to the national grid. Currently, until the technology has improved, it is assumed you are sending 50% of the power you generate to the national grid.
3. Energy bill savings – of course these two are over and above the savings you will make on your electricity bill by generating your own green power.
Example of how the Feed-in Tariff works
As an example, a typical domestic solar electricity system, with an installation size of 3.9 kWp could earn around:
- £1450 Generation Tariff
- £50 Export Tariff
- £170 Electricity bill saving
This gives a total saving of around £1,670 per year.
What payments will you be eligible for, and how can you claim them?
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 MCS scheme:
Here are some guidelines as to what you might receive for your domestic installation.
Installed before July 15th 2009 and previously you had been eligible for Renewables Obligation Certificate (ROCs) payments
- If you contacted Ofgem by 31st March 2010 to get your ROC transferred to the FIT then you will receive 9p/kWh for every unit generated plus 3p/kWh for every unit exported
Installed before July 15th 2009 but not registered for Renewables Obligation Certificates
- If you didn’t contact Ofgem by 31st March 2010 to apply for Renewables Obligation accreditation then you won’t be eligible for FITs.
- If you did register with Ofgem by 31st March 2010 then you will receive the flat tariff of 9p/kWh for every unit generated plus 3p/kWh for every unit exported.
Installed between 15th July 2009 and 1st April 2010
- You will get full FIT payment if your product and supplier are both registered under MCS. You can apply after April 1st 2010 if you haven’t already.
- If your product and supplier are not both registered under MCS and you didn’t contact Ofgem by 31st March 2010 to apply for Renewables Obligation accreditation then you won’t be eligible for FITs
Installed after 1st April 2010. MCS certificated 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 certificated 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.
Small Generators (50kW to 5MW) installed from 15th July 2009
- If you switched from Renewables Obligation Certificates (ROCs) to FITs before 1st April, then you will be eligible to receive the full generation tariff and export tariff.
Don’t forget energy efficiency!
It is recommended that you ensure your home is as energy efficient as possible by having:
- adequate loft and cavity wall insulation.
- installed proper heating controls
- replaced all old bulbs with low energy lighting
- having bought Energy Saving Recommended rated appliances
You should do this before you invest in renewable or low carbon energy systems so that the electricity generated is not wasted. By taking all the steps recommended, signing up for Feed in Tarrifs you will not only save money you might also make some money.
