Feed-in-Tariff Scheme (UK)

The FiT Scheme

The FIT (Feed in Tariff) scheme is a UK Government programme designed to promote the uptake of small-scale renewable and low-carbon electricity generation technologies. Programme policy and tariff rates were originally developed and set by DECC (Department of Energy and Climate Change) which has since been superseded by the creation of BEIS (Department of Business, Energy & Industrial Strategy) in 2016.

Administration

Introduced on 1 April 2010, the scheme is overseen by Ofgem with participating licensed electricity suppliers being responsible for the administration of payments to accredited installations which have been registered with individual suppliers.

Technologies

The FiT scheme covers the following small-scale generation renewable and low-carbon electricity generation technologies - Anaerobic digestion (AD), Hydro, Micro-CHP, Solar PV & Wind.

Applicable Tariff

Once accredited, each installation is assigned an applicable tariff which is based on a number of relevant factors including technology, Total Installed Capacity (TIC), property efficiency requirements, and since 2016 period based relative deployment caps. The applicable tariff rates are adjusted annually in April in line with the RPI movement relative to the previous year.

Data Submission

Each installation location must have at least one TGM (Total Generation Meter) to record site generation. It is a scheme requirement that TGM readings are submitted to the relevant licensed energy supplier on a regular basis, this normally being quarterly. The method of data submission varies by licensed supplier, but typically include email, on-line or by telephone. In situations where multiple systems which have different applicable tariff rates feed through a single TGM, the licensed supplier will apportion generation after receipt.

Payment

Payment is made quarterly at the applicable set FiT tariff for each kWh generated as measured by a TGM and submitted to the relevant licensed supplier, with an additional sum paid for electricity generated and exported to the National Grid, whether on a directly metered or deemed export basis. The vast majority of export payments made are based on deeming export to be a fixed 50% of total generation as measured by the TGM.

Tariff Change Apportionment

For periods which include an April rate change, payments are apportioned by the licensed energy suppliers according to an estimate of what the TGM reading would have been at the tariff change date.

Current & Historical Tariff Rates

Tariff rates for all applicable technologies and for all installation dates are made available on the Ofgem website ( Link - https://www.ofgem.gov.uk/environmental-programmes/fit/fit-tariff-rates ), or by clicking the attached Ofgem e-serve logo.

Further Information

Ofgem provide detailed information regarding the FiT scheme, including guidance for application on their website here ... ( Link - https://www.ofgem.gov.uk/environmental-programmes/fit/about-fit-scheme )