The feed-in tariff system is designed as an incentive for home owners and building managers to move away from conventional fossil fuels to renewable energy sources.
Virtually every property in England, Scotland and Wales is eligible. This includes homes, schools, hospitals, landlords, farmers, care homes, churches, supermarkets, shopping centres, surgeries etc.
Once you start at a given tariff, it is guaranteed for the full period (currently 20 years) and is index linked.
The tariff levels are index-linked and each year the set level of the generation and export tariffs will be adjusted pro-rata to the retail price index. The Tariff administrators will publish the updated tariff levels.
What tariff will apply?
|1 April 2016 – 31 March 2019||2016||2017||2018||2019|
|Description||01/04 -30/06||01/07 -30/09||01/10 -31/12||01/01 -31/03||01/04 -30/06||01/07 -30/09||01/10 -31/12||01/01 -31/03||01/04 -30/06||01/07 -30/09||01/10 -31/12||01/01 -31/03|
|System capacity of 10 kW or less||4.32||4.25||4.18||4.11||4.04||3.97||3.90||3.83||3.76||3.69||3.62||3.55|
|System capacity > 10 kW – 50kW||4.53||4.46||4.39||4.32||4.25||4.19||4.12||4.05||3.98||3.91||3.85||3.78|
|System capacity >50 kW – 250kW||2.38||2.32||2.26||2.21||2.15||2.10||2.04||1.98||1.93||1.87||1.82||1.76|
|System capacity >250 kW – 1mW||1.99||1.94||1.88||1.83||1.77||1.72||1.67||1.60||1.55||1.49||1.44||1.39|
|System capacity > 1 MW||0.74||0.68||0.63||0.58||0.52||0.47||0.41||0.37||0.32||0.26||0.21||0.15|
|Stand-alone solar photovoltaic||0.74||0.68||0.63||0.58||0.52||0.47||0.41||0.37||0.32||0.26||0.21||0.15|
|Note: FIT Payment rates for solar photovoltaic installations have been determined by the Gas and Electricity Markets Authority (Ofgem) under Article 13of the Feed-in Tariffs Order 2012, in accordance with Annex 3 to Schedule A to Standard Licence Condition 33.
All tariff rates are specified as pence per kilowatt hour at 2016/17 values.
For those who are already registered, tariffs will only change in accordance with the index-linking described above.
Solar PV is here to stay and will be a good long term investment for years to come.
Feed-in tariffs will be exempt from income tax. This means that domestic users and other income tax payers will not be taxed for any income received from the Feed-In Tariffs.
Companies will be subject to Corporation Tax on their tariff income; however they should be able to claim back the installation cost against tax.