ice energy solar pv array

One of the reasons for the recent boom in the solar photovoltaic (solar PV) industry is the introduction of the Feed-in-Tariff. While the cost of solar PV panels has reduced as competition for customers has increased, there is little doubt that the financial incentives provided by the Feed-in-Tariff have certainly played their part.

Much has been written about the Feed-in-Tariff, some true and some false but the following information will help you to understand more about how the Feed-in-Tariff works and how it can benefit you.

What is the Feed-in-Tariff?

The Feed-in-Tariff is a Government initiative designed to reward adopters of electricity-generating technologies such as solar photovoltaic (solar PV). Energy suppliers, including the 'big six' will provide the payments and are required by law to do so.

How does the Feed-in-Tariff work?

You can be paid for each unit of electricity your solar PV system generates - this is known as a Generation Tariff. Additionally, you can receive payments for electricity you generate but don't use. This is known as an Export Tariff.

It's important to remember that the payment levels for the Feed-in-Tariff can and do change from time to time. As such, the tariff level or price per unit of electricity generated or exported you are entitled to, will depend on when your solar photovoltaic panels are installed and the payment levels available at that time.

Feed-in-Tariff payments

As well as the tariff level mentioned above, the value of the payments you receive will depend on the number of solar PV panels you install and therefore the amount of electricity you are able to generate. According to figures from the Energy Saving Trust (EST), the savings which could be received via the Feed-in-Tariff are as follows:

  • £400 a year from the Generation Tariff
  • £50 from the Export Tariff
  • £90 a year reduction of current electricity bills

This gives a total saving of £540 per year based on a 3kWp installation but as stated above, it could be higher if you are able to install a larger system.

The current Feed-in-Tariff rates are shown on our Feed-in-Tariff Update page.

When will I receive Feed-in-Tariff payments?

Payments from the Feed-in-Tariff are made quarterly and in addition to being tax-free, they are index-linked and guaranteed for 20 years.

How do I qualify for the Feed-in-Tariff?

To qualify for the Feed-in-Tariff your installer must be accredited (as all our installers are) under the Microgeneration Certification Scheme (MCS). You will also need an additional electricity meter (a Total Generation Meter) which will be provided by during installation.

It is down to you to register for the Feed-in-Tariff payments although we can certainly help complete the applications. However, we do not complete them on your behalf and bear no liability should you miss any of the application dates.

Feed-in-Tariff timeline for payments

  • After installation, the installer will register you on the central MCS database and send you a certificate which confirms your solar photovoltaic systems MCS compliance
  • This is then sent to the Feed-in-Tariff supplier with a completed application and your MCS certificate
  • Your supplier will then confirm your eligibility and the date from which you can receive payments
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