What is the Feed in tariff?

On the 1st April, UK householders and businesses generating their own electricity from renewable sources will be eligible for payment under the Government's new feed in tariff. The scheme will include solar photovoltaic panels (PV), micro CHP, and wind turbines.

Feed in tariffs have been around in several mainland European countries such as Germany for many years now.

The scheme pays not just on electricity fed back to the national grid, but on all electricity generated from renewable sources. Any electricity exported back to the grid will accrue a second payment to the householder!

PV panel small

Existing Installations

The scheme is being administered by Ofgem, and anyone wishing to take part in the scheme who has already had these technologies installed need to contact Ofgem to register by March 31st 2010 The equipment must have been installed by an MCS approved installer, no earlier than 15th July 2009 to qualify.

New Installations

All new installations must be carried out by an MCS accredited installer to qualify. In addition, MCS - accredited equipment must be installed. For more information on MCS approved installers and products, visit the Microgeneration Certification Scheme website here

How much can I earn?

The Feed in tariff pays various fees according to the technology being installed. Below is a table outlining the amounts paid

Feed in tariff


If we assume that you use 5,000 kW/h of electricity per year and pay 12p per kw/h for it (check your electricity bill to compare), then your electricity bill will be 5,000 x 12p = £600.00

Now, let's say you install a 2kW PV installation on your roof. It's reasonably safe to assume that you will use about half, and export half back to the grid. (While you're at work, your PV will keep your fridges, alarm clocks etc running, whilst you're at home, you'll be making more use of it)

So, for generating 2,000 kw/h of electricity the FIT will pay you 2,000 x 41.3p = £826. A further 1,000 x 3p will be generated for the 1,000 kw/h you export back (£30) so you will be paid £856 in total. And the best bit is, this payment is completely tax free, and guaranteed for 25 years!!!

Not only that, but your electricity bill will have reduced by the 1,000kW/h you produced yourself (1,000 x 12p) saving you a further £120!!

One man, who has taken the plunge into PV has been monitoring his investment closely, and will continue to do so for the coming years. Chart his progress at www.uksolarcasestudy.co.uk

What next?

Once you've had the technology installed, you will need to contact your electricity provider who will register you for the scheme. They will do the rest. There may be a charge from the energy supplier to have an additional meter installed. All major electricity providers have details about the feed in tariff on their websites. Further information can be obtained from the energy savings trust.

We certainly think that the Feed in tariff will help boost sales of PV solar over the coming months and years. Go check it out!

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