What is the Feed-in Tariff?

The Government launched the Feed-in Tariff on 1 April 2010, this is a premium payment for every unit of electricity that is generated by small solar pv systems. This replaced the LCBP government grant schemes. The Feed-in Tariff is tax free to domestic households and index linked to inflation for both commercial and domestic installations.

Who is eligible?
All PV installations under 5MW, private and commercial are eligible. On the commercial side, the feed-in tariff encourages photovoltaic (PV) installations among farmers, rural businesses, small and medium enterprises. A typical 50kW installation costs just over £100,000 but will return almost £20,000 per annum.

How much will I get from 12th December 2011?

System	Pre 12/12/11 generation tariff (p/kWh)	Post 12/12/11 generation tariff (p/kWh)
?4kW (new build)	37.8	21.0
?4kW (retrofit)	43.3	21.0
>4-10kW	37.8	16.8
>10-50kW	32.9	15.2
>50-100kW	19	12.9
>100-150kW	19	12.9
>150-250kW	15	12.9
>250kW-5MW	8.5	8.5*
Stand alone	8.5	8.5*

* Note that these are the current tariffs which we are not proposing changing and which, like all other current tariffs, will be adjusted in line with the Retail Price Index from 1 April 2012.

Under the proposals, the new tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011. Such installations would receive the current tariff before moving to the lower tariffs on 1 April 2012. Consumers who already receive a FIT will see their existing payments unchanged, and those with an eligibility date on or before 11 December 2011 will receive the current rate.

Feed-in tariffs have been introduced successfully in many countries around the world, including Spain and Germany. It has encouraged huge growth in PV and created many jobs.

How is it be implemented?
Ofgem administer the feed-in tariff. Power companies are responsible for paying the reward to their customers.

Is VAT payable?
VAT at 5% is payable on domestic installations. New builds are often VAT exempt, commercial buildings will pay standard VAT rates at 20%.

How to gain access to the Feed in Tariff
As an MCS Installer, BSOLAR are required to input details of all installations into a central MCS Database. The database generates an MCS Certificate with a unique certificate number that is sent direct to the customer. The customer will require this certificate to gain access to the Feed-in Tariff.