Feed In Tariff


The Feed In Tariff has recently been subject to a radical review – but it has survived, and here we explain it in further detail.

The Feed In Tariff was introduced by the government in April 2010 to encourage the uptake of renewable energy, at both a commercial, and a domestic level.

Rates have fallen over the last six years – but then so has the cost of installing a system.

Rates for new systems decrease by about 1.5% every quarter – you can see the full rate table below.

In short, anybody installing a qualifying renewable energy system is able to benefit in three ways:

  • A guaranteed payment for every unit of electricity generated by the system (irrespective of whether or not that electricity is being used)
  • A further payment for every unit of electricity that is not used, but exported back to the National Grid
  • Reduced electricity bills

At a domestic level, an average 4kW system costing, say, £6,000 to install, would generate in excess of 3500kWh (units of electricity) a year.
This would produce three cash benefits:

  • Generation payment of £150*
  • Export payment of £85
  • Bill reductions of £225

That’s a total of £460 – minimum – a year – and carbon savings of 1819kg a year too. In practice, most of our installed systems outperform our estimates by at least 10 percent.
Bill reductions can be higher depending on how much electricity you use – this estimate is based on using 50% of the electricity you generate.

The Feed In Tariff payments are guaranteed for 20 years, returns are index linked – so as energy bills soar, so will your income.
All solar photovoltaic systems installed since April 1st 2010 qualify – so long as they are installed by a MCS accredited installer (such as Ecocetera).
* Based on the new Feed In Tariff rates effective from 01/07/16 to 30/09/16
The full rate table is as follows.

Properties also need to produce an Energy Performance Certificate (EPC) showing a rating of D or above in order to qualify for Feed In Tariff payments at these rates. But don’t worry, we have that covered. At Ecocetera, we will be able to tell you when we quote whether or not your home will achieve a D rating – and if not, how you can make improvements to ensure it does!