Feed-In Tariff Scheme (FITS) Explained

Feed-in tariffs schemes (FITS) are new measures introduced by the Government to support the uptake of micro-generation technologies in the UK. To help you understand what FITS’ are and how you could benefit from their introduction we have put together a set of frequently asked questions that explain everything.

Have a look at our facts and figures document here

FITS payments are financial support measures introduced by the government to increase the uptake of small-scale renewable generation (<5MWp) and help deliver the UK’s 2020 renewable energy targets. The scheme provides renewable generators with a 25 year guaranteed per unit support payments (p/kWh) for photovoltaic (PV) electricity generation

What are the key benefits of the Feed-In Tariff?

The FITS provides three key benefits for anyone installing micro-generation.

  • Guaranteed premium payment for all electricity produced.
  • Guaranteed price for any electricity exported onto the electricity network. This will be deemed based on the amount electricity generated at a buy-back price of 3p per unit (additional to the FITS shown below).
  • Onsite usage of generated electricity, therefore reducing the amount purchased from an electricity supplier.

How much will I receive for generating using solar PV modules?

The table below provides details of the tariff levels that you can expect to receive.

Technology Scale Feed-Tariff Level(2012) Tariff Lifetime
Solar PV <4kW 21.0 25 Years
Solar PV >4-10kW 16.8 25 Years
Solar PV >10-50kW 15.2 25 Years
Solar PV >50-150kW 12.9 25 Years
Solar PV >150-250kW 12.9 25 Years
Solar PV >250Kw-5MW 8.9 25 Years
Solar PV Stand alone system** 8.9 25 Years
“Stand alone means not attached to a building and not wired to provide electricity to an occupied building.

The tariff levels set out above apply to systems installed before April 2012. Systems installed after this will bill subject to new lower tariff rates: The government proposes that the model incorporates annual “digression” whereby the tariff level will reduce by a fixed percentage for systems installed in the future. Generators will continue to receive the same tariff rate for 25 year period as they did upon installation.

How much will I save?

 

The amount of money you save will be dependent on the amount of electricity that you generate and how you use this electricity in the home. The feed-In tariff is a ‘premium tariff’ which means that generators will be paid the FITS rate (p/kWh) for their total generation but will also be able to ‘sell’ any electricity they export back to the grid. Customers will receive a guaranteed export payment of 3p/kWh. This is designed to encourage generators to use the electricity they generate within their home so they can benefit further from reducing the need to purchase electricity from a supplier. The below table provides examples of the savings that you could make by installing solar PV panels

 

Installed System Size 4kWp 10kWp 50kWp 250kWp
Annual Generation**(kWh/a) 3,861 9,557 47,788 238,940
Electricity exported (kWh) 1,931 4,779 23,894 119,470

 

Feed-In Tariff (untill 1st July 2012)

Typical import price p/kWh 14.05 14.05 14.05 14.05
FITS (p/kWh) 21 16.8 15.2 12.9
Export price 3.1 3.1 3.1 3.1

1Average UK tariff price for Midlands distribution area as of 31st March 2012

 

Potential Revenue

Import Savings £271.24 £671.38 £3,357.11 £16,785.54
FITS income £810.81 £1,605.58 £7,263.78 £30,823.26
Export income £59.85 £148.13 £0.00 £0.00
TOTAL BENEFIT £1,141.89 £2,425.09 £10,620.88 £47,608.80

 

 

To help us provide you with the best advice and outline estimate, contact us on 0844-453-5591 or sales@worcesterrenewables.com

and one of our team will be happy to provide you with a desk top survey and answer any questions you may have.

For more information on FITS qualification and application please click here

Feel free to read the Ofgem FITS Factsheet here

For further information on the Feed In Tariff click here

Click Here to Download Our FREE Comprehensive Guide