How Feed-in Tariffs work

If you have had a solar panel system fitted (either by another company or us), you may be happy with its fringe benefits after the initial outlay. Firstly, the extra few pounds you are gaining per kilowatt by rivalling Radcliffe-on-Soar power station. Then there’s the feeling you’re giving something back to the planet.

As a thank-you for helping to reduce carbon emissions, the Office of Gas and Electricity Markets Authority (OFGEM to many of us) pay you a little dividend per kWh. This rate varies on how powerful your solar installation is; for example, up to 10kW or above 250kW.

Feed-in Tariffs were introduced on the 01 April 2010 and are available for anyone with – or wishing to install – Solar Photovoltaic panels. FITs cover Solar PV systems up to 5MW (or 2kW for a Micro-CHP). Payments are derived from the electricity generated and the submission of meter readings. Feed-in Tariffs have three rates: low, middle, and high.

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These vary according to the power of each Solar PV system, and are classed as follows:

  • Up to 10 kilowatts;
  • From 10 to 50 kilowatts;
  • From 50.01 to 250 kilowatts.
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There are three parts of a fully functioning FITs scheme:

  • Generators;
  • Licensees;
  • The OFGEM E-Serve portal.

Generators, in this context, refer to the owners of solar PV installations. He or she is responsible for submitting their application to OFGEM.

Licensees are where we [LJ Electrical of Loughborough] come to the fore. We are able to go through the application process with you. Once you are up and running, we are able to send the FIT payments your way. We are able to procure the solar PV equipment and undertake installations.

The OFGEM E-Serve portal is responsible for administering some aspects of the FIT scheme. Rates are set by the Department for Business, Energy and Industrial Strategy.

For further information, the OFGEM website is a worthwhile read. Whether you have an existing solar PV system or wish to have one installed, we can also point you in the right direction.