Feed-In Tariffs – FiTs

Clean Energy Cashback Financial Incentives

News Flash:

“The Government has published proposals to introduce new Feed-in Tariff rates for PV systems with a total installed capacity of 250 kW or less. The Government is proposing that these tariffs are implemented from 1 April 2012 but apply to all solar PV installations with an eligibility date of on or after 12 December 2011.

The eligibility date is the date on which the FITs licensee receives the consumer’s request for FiT registration of a commissioned installation, which must include a valid MCS certificate. DECC will be recommending that consumers use special delivery so they have proof that their licensee has received their application and MCS certificate prior to the reference date.

These proposals are set out in a consultation document. The consultation will run from 01-Nov-11, ending on 23 December 2011. Instructions for responding to it are contained in the consultation document.

The Government is proposing the following rates for solar PV from 1 April 2012:

up to 4 kW	21p/kWh
4 – 10 kW	16.8p/kWh
10 – 50 kW	15.2p/kWh
50 – 250 kW	12.9p/kWh

An important element of the proposals is the inclusion of the 12 December 2011 reference date. This would mean that any new solar PV installations with an eligibility date on or after 12 December 2011 will receive the current tariff rate in respect of generation up to 31 March 2012, but in respect of generation from 1 April 2012 they will receive the new, lower tariff rate.”

Feed-In Tariffs - Rates

"Feed-In Tariffs" are a form of Clean Energy Cash-back which are paid based on metered electricity generated - whether or not the electricity is fed back to the Grid. If the electricity is paid back to the Grid, the consumer receives a further 3 pence /KWatt hour.

Tax free income from Feed-In Tariffs

Tariffs will be exempt from income tax. This means that domestic users and other income tax payers will not be taxed on any income received from the Feed-In Tariffs or the Renewable Heat Incentive.

In Summary - How the FIT scheme works

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

Generation Tariff

A set rate paid by the energy supplier for each unit or kilowatt hour of electricity you generate is set at 21pence for the next 25 years.

Export Tariff

You will receive a further 3p per kilowatt hours from your energy supplier for each unit that you export back to the grid, that is when it is not being 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 mean you don’t have to buy any from your suppliers. The amount you save will vary depending upon how much electricity you use on site.