Feed-in tariff

Updated: 05.01.2019

Author: Georgios Maroulis

The feed-in tariff (FiT) system in Great Britain aims to support small-scale RES-E plants with the capacity less than 5 MW(art. 3 FTO 2012).

Plants using eligible sources must undergo an accreditation process, which depends on the plant size and energy source. Once this process is completed and a plant has been accredited, the electricity exported to the grid by the plant is bought by a FiT licencsee, i.e. an electricity supplier, at the rates fixed by the FTO 2012 and corrected yearly by the Gas and Electricity Markets Authority (Ofgem).

The FTO 2012 applies only to Great Britain, i.e. England, Wales and Scotland. The Order does not apply to Northern Ireland. It is expected that the scheme will cease in April 2019.

Eligible technologies

Wind energy, solar PV energy, biogas (anaerobic digestion), hydro-energy are eligible. Installations using these technologies are eligible as long as their specified maximum capacity does not exceed 5MW (art. 3 FTO 2012). 

Wind energy

Eligible (art. 2 (2), 3 FTO 2012). In order to be accredited, installations of less than 50 kW shall take part in the Microgeneration Certification Scheme (MCS), an independent scheme that certifies microgeneration products of less than 50 kW and installers in accordance with consistent standards. For wind installations with a declared net capacity (DNC) of more than 50 kW preliminary accreditation is available (art. 4-6, 9 FTO 2012).

Solar energy

PV installations are eligible (art. 2 (2), 3 FTO 2012). In order to be accredited, installations of less than 50 kW shall take part in the Microgeneration Certification Scheme (MCS), an independent scheme that certifies microgeneration products of less than 50 kW and installers in accordance with consistent standards. 

Biogas

Eligible (art. 2 (2), 3 FTO 2012). Plants shall be accredited under the ROO-FiT process, a process for accreditation based on the existing ROO process (art. 4-6 FTO 2012).  

Hydro-power

Only “traditional” hydro is eligible. Tidal and wave energy are not eligible (art. 2 (2), 3 FTO 2012). Plants shall be accredited under the ROO-FiT process, a process for accreditation based on the existing ROO process (art. 4-6 FTO 2012). 

Amount

The table setting out FIT rates for PV and all other technologies for the following FIT year is published by Ofgem every year on or before 1 February (art. 16 FTO 2012).  The FIT rates change in line with inflation in accordance with the Retail Price Index (RPI).

Solar energy

Payment rates from 1 October 2018 to 31 Dezember2018 (Feed-in Tariff Generation & Export Payment Rate Table of 1 October 2018, in conjunction with art. 13 FTO 2012): depending on efficiency parameters of as outlined in Annex 2 of Schedule A to Standard Condition 33, three rates (“higher” - H, “middle” - M and “lower” - L) for PV installations are provided.

Capacity

GBP per kWh

≤ 10kW (other than stand-alone)

  • H: 0.0386 (approx. 0.0436 €/kWh)
  • M: 0.0347 (approx. 0.0393 €/kWh) 
  • L: 0.002 (approx. 0.0022 €/kWh) 

10kW - 50kW (other than stand-alone)

  • H: 0.0411 (approx. 0.0465 €/kWh)
  • M: 0.037 (approx. 0.0418 €/kWh) 
  • L: 0.002 (approx. 0.0022 €/kWh) 

    50kW - 250kW (other than stand-alone)

    • H: 0.0175 (approx. 0.0197 €/kWh)
    • M: 0.0158 (approx. 0.0178 €/kWh)
    • L: 0.002 (approx. 0.0022 €/kWh) 

      250kW - 1MW (other than stand-alone)

      0.0138 (approx. 0.0156 €/kWh)

        > 1MW (other than stand-alone)

        0.002 (approx.  0.0022 €/kWh)

          Stand-alone (>1MW)

          0.0008 (approx. 0.0009 €/kWh)

          Solar PV installation with eligibility date on or after 1 April 2012 and with a total installed capacity up to and including 250 kW consisting of 25 or more PV installations receives a multi-installation tariff which equals the middle tariff rate (M) that applies to such an installation (art. 16 FTO 2012 in conjunction with Schedule A to Standard Condition 33). 

          In order to be eligible for the highest generation tariff rates solar PV installation(s) or its/their extension(s) with a total installed capacity up to and including 250 kW are required to demonstrate that the building to which the solar PV is attached or wired to supply electricity to has achieved an Energy Performance Certificate (EPC) rating of Level D or above. Installations which do not meet this requirement are eligible for a lower (L) tariff rate. To receive higher generation rate, non-domestic solar PV community energy and school installations with declared net capacity up to 250kW have to demonstrate minimum energy efficiency level G and above.

          Exempted from energy efficiency requirements are standalone PV installations. (art. 16 FTO 2012 in conjunction with Schedule A to Standard Condition 33). 

          Biogas

          Payment rates from 1 October 2018 to 31 December 2018 (Feed-in Tariff Generation & Export Payment Rate Table of 1 October 2018 in conjunction with art. 16 FTO 2012).

           

          Capacity

          GBP per kWh

          < 250kW

          0.0453 (approx. 0.0558€/kWh)

          250kW- 500kW

          0.0443 (approx. 0.0528€/kWh)  

          >500kW

          0.0155 (approx. 0.0197€/kWh)

           

           

           

          Hydro-power

          Payment rates from 1 October 2018 to 31 December 2018 (Feed-in Tariff Generation & Export Payment Rate Table of 1 October 2018 in conjunction with art. 16 FTO 2012).

          Capacity

          GBP per kWh

          < 100kW

          0.0804 (approx. 0.0871 €/kWh)

          100kW - 500kW

          0.0646 (approx. 0.0801 €/kWh)  

          500kW-2MW

          0.0624 (approx. 0.0698 €/kWh)

          > 2MW

          0.0473 (approx. 0.0698 €/kWh)

          Wind energy

          Payment rates from 1 January 2018 to 31 March 2018 (Feed-in Tariff Generation & Export Payment Rate Table of 1 January 2018 in conjunction with art. 16 FTO 2012).

          Capacity

          GBP per kWh

          ≤ 50 kW

          0.08131 (approx. 0.0939 €/kWh)

          50 kW - 100 kW

          0.0491 (approx. 0.0555 €/kWh)

          100kW - 1.5 MW

          0.0172 (approx. 0.0194 €/kWh)

          > 1.5MW

          0.005 (approx. 0.0094 €/kWh)

          Addressees

          Entitled party. Operators of accredited eligible installations (art. 4-6 FTO 2012). 

          Obligated party. All FiT licensees, i.e. either electricity suppliers that provide electricity, alone or with their affiliates, to more than 250,000 households are required to participate in the FiT Scheme. Smaller supply companies may decide to participate in the scheme on a voluntary basis (art. 6 (1) (d) EA 1989 in conjunction with Annex 1 Schedule A to Standard Condition 33).

          Procedure

          Process flow

          • Application for accreditation. There are two ways for accreditation: 
            • Microgeneration Certification Scheme (MCS). Solar PV or wind with a Declared Net Capacity (DNC) up to 50kW and micro-CHP (a CHP with a Total Installed Capacity (TIC) of 2kW) need to be certified under the Microgeneration Certification Scheme (MCS) and to be installed by an MCS-certified installer. For the accreditation under the MCS applicants shall approach their electricity supplier. 
            • ROO-FIT accreditation. ROO-FIT accreditation is required for solar PV and wind installations with a DNC exceeding 50kW and up to a TIC of 5MW and AD or hydro installations up to 5MW. Applications for the ROO-FIT accreditation shall be submitted to Ofgem via a generator account on Renewables and CHP Register. 
          • Agreement to FIT Terms. Applicant shall agree to a Statement of FIT Terms of his electricity supplier before FIT payments can begin.
          • Meter readings. Applicant shall provide meter readings to the electricity supplier who will make FIT payments. (“Feed-in Tariff: Guidance for Renewable Installations (Version 10.1)” by Ofgem of 10 May 2016).

          (“Feed-in Tariff: Guidance for Renewable Installations (Version 9)” by Ofgem of 30 June 2015)

          In practice, after installing a plant of 50 kW or less, the owner is obliged to inform the energy supplier of his choice. The supplier will then include the installation in the Central FiT register. The owners of plants of more than 50 kW shall direct their applications to the Gas and Electricity Markets Authority (Ofgem).

          For PV and wind installations with a declared net capacity (DNC) over 50 kW and all anaerobic digestion (AD) and hydro installations, preliminary accreditation is available (except for extensions of accredited FiT installations). Ofgem must grant preliminary accreditation where prerequisite documentation meets the requirements of the FiT Order and the installation, once commissioned, would receive accreditation under the FiT scheme. The assurance validity period depends on the technology. In case of preliminary accreditation, the operator receives the tariff rate at the date of the preliminary accreditation. The eligibility period starts from the date of commissioning (art. 9 FTO 2012 in conjunction with Schedule A to Standard Condition 33).  

          Competent authority

          The Gas and Electricity Markets Authority (Ofgem) (art. 2 (1) FTO 2012).

          Degression

          There are several elements of the FIT degression mechanism in the UK:
          • ‘Default degression’. The frequency of degression differentiates depending on technologies (see the table below). (art. 6 (1) (d) EA 1989 in conjunction with Annex 1 Schedule A to Standard Condition 33). The tariffs for each technology band have been mapped to the end of the feed-in tariffs in 2019 according to the following table:
          2016 price p/kWhQ1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019
          Solar PV
          <10kW4.394.324.254.184.114.043.973.93833.763.693.623.55
          10 - 50kW4.594.534.464.394.324.254.194.124.053.983.913.853.78
          50 - 250kW2.72.642.582.512.452.392.332.272.22.142.082.021.96
          250 - 1000kW2.272.212.152.092.031.971.911.851.781.721.661.61.54
          1000 - 5000kW0.870.820.760.70.640.580.520.460.410.350.290.230.17
          Stand alone0.870.820.760.70.640.580.520.460.410.350.290.230.17
          Hydro
          <100kW8.548.538.518.58.488.468.458.438.428.48.398.378.35
          100 - 500kW6.146.146.136.126.116.116.16.096.096.086.076.066.06
          500 - 2000kW6.146.146.136.126.116.116.16.096.096.086.076.066.06
          2000 - 5000kW4.434.434.434.434.434.434.434.434.434.434.434.434.43
          Wind
          <50kW8.538.468.398.338.268.198.138.067.997.937.867.797.73
          50 - 100kW8.538.468.398.338.268.198.138.067.997.937.867.797.73
          100 - 1500kW5.465.435.45.375.345.325.295.265.235.25.175.145.12
          1500 - 5000kW0.860.850.840.830.820.810.790.780.770.760.750.740.73
          Source: http://www.fitariffs.co.uk/ 
          • ‘Contingent degression’. ‘Contingent degression’ allows the degression rates to be adjusted depending on the actual levels of deployment under the FITs. The tariffs will be reduced by 10% when the deployment in any technology band hits the caps set by the government. The defined caps are the following:
          Maximum Deployment (MW)Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019
          PV
          <10kW48.449.650.651.752.853.854.255.9575859.160.161.1
          10 - 50kW16.51717.417.818.218.618.719.419.820.320.721.121.5
          >50kW14.114.514.915.415.816.216.417.117.61818.51919.4
          Stand alone5555555555555
          Wind
          <50kW5.65.65.55.55.65.55.55.45.55.45.45.35.4
          50 - 100kW0.30.30.30.30.30.30.30.30.30.30.30.30.3
          200 - 1500kW6.86.76.66.56.46.36.26.16.15.95.85.75.7
          1500 - 5000kW5555555555555
          Hydro
          <100kW1.11.11.21.21.21.31.31.31.31.31.41.41.4
          100 - 5000kW6.16.26.36.36.46.46.46.46.46.46.46.36.3
          AD
          All5.8555555555555
          Source: http://www.fitariffs.co.uk   
          Solar energy

          •  ‘Default degression’. The frequency of degression differentiates depending on technologies (see the table below). (art. 6 (1) (d) EA 1989 in conjunction with Annex 1 Schedule A to Standard Condition 33). The tariffs for each technology band have been mapped to the end of the feed-in tariffs in 2019 according to the following table:

          2016 price p/kWh

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1  2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          <10kW

          4.39

          4.32

          4.25

          4.18

          4.11

          4.04

          3.97

          3.9

          3.83

          3.76

          3.69

          3.62

          3.55

          10 - 50kW

          4.59

          4.53

          4.46

          4.39

          4.32

          4.25

          4.19

          4.12

          4.05

          3.98

          3.91

          3.85

          3.78

          50 - 250kW

          2.7

          2.64

          2.58

          2.51

          2.45

          2.39

          2.33

          2.27

          2.2

          2.14

          2.08

          2.02

          1.96

          250 - 1000kW

          2.27

          2.21

          2.15

          2.09

          2.03

          1.97

          1.91

          1.85

          1.78

          1.72

          1.66

          1.6

          1.54

          1000 - 5000kW

          0.87

          0.82

          0.76

          0.7

          0.64

          0.58

          0.52

          0.46

          0.41

          0.35

          0.29

          0.23

          0.17

          Stand alone

          0.87

          0.82

          0.76

          0.7

          0.64

          0.58

          0.52

          0.46

          0.41

          0.35

          0.29

          0.23

          0.17

          • ‘Contingent degression’. ‘Contingent degression’ allows the degression rates to be adjusted depending on the actual levels of deployment under the FITs. The tariffs will be reduced by 10% when the deployment in any technology band hits the caps set by the government. The defined caps are the following:

          Maximum Deployment (MW)

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1 2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          <10kW

          48.4

          49.6

          50.6

          51.7

          52.8

          53.8

          54.2

          55.9

          57

          58

          59.1

          60.1

          61.1

          10 - 50kW

          16.5

          17

          17.4

          17.8

          18.2

          18.6

          18.7

          19.4

          19.8

          20.3

          20.7

          21.1

          21.5

          >50kW

          14.1

          14.5

          14.9

          15.4

          15.8

          16.2

          16.4

          17.1

          17.6

          18

          18.5

          19

          19.4

          Stand alone

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          Wind energy

          • ‘Default degression’. The frequency of degression differentiates depending on technologies (see the table below). (art. 6 (1) (d) EA 1989 in conjunction with Annex 1 Schedule A to Standard Condition 33). The tariffs for each technology band have been mapped to the end of the feed-in tariffs in 2019 according to the following table:

          2016 price p/kWh

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1 2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          <50kW

          8.53

          8.46

          8.39

          8.33

          8.26

          8.19

          8.13

          8.06

          7.99

          7.93

          7.86

          7.79

          7.73

          50 - 100kW

          8.53

          8.46

          8.39

          8.33

          8.26

          8.19

          8.13

          8.06

          7.99

          7.93

          7.86

          7.79

          7.73

          100 - 1500kW

          5.46

          5.43

          5.4

          5.37

          5.34

          5.32

          5.29

          5.26

          5.23

          5.2

          5.17

          5.14

          5.12

          1500 - 5000kW

          0.86

          0.85

          0.84

          0.83

          0.82

          0.81

          0.79

          0.78

          0.77

          0.76

          0.75

          0.74

          0.73

          • ‘Contingent degression’.Contingent regression’ allows the degression rates to be adjusted depending on the actual levels of deployment under the FITs. The tariffs will be reduced by 10% when the deployment in any technology band hits the caps set by the government. The defined caps are the following:

          Maximum Deployment (MW)

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1 2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          <50kW

          5.6

          5.6

          5.5

          5.5

          5.6

          5.5

          5.5

          5.4

          5.5

          5.4

          5.4

          5.3

          5.4

          50 - 100kW

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          0.3

          100 - 1500kW

          6.8

          6.7

          6.6

          6.5

          6.4

          6.3

          6.2

          6.1

          6.1

          5.9

          5.8

          5.7

          5.7

          1500 - 5000kW

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          Biogas

          • ‘Default degression’. There is no default degression for biogas. 
          • ‘Contingent degression’. ‘Contingent degression’ allows the degression rates to be adjusted depending on the actual levels of deployment under the FITs. The tariffs will be reduced by 10% when the deployment in any technology band hits the caps set by the government. The defined caps are the following:

          Maximum Deployment (MW)

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1 2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          All

          5.8

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          5

          Hydro-power

          • ‘Default degression’. The frequency of degression differentiates depending on technologies (see the table below). (art. 6 (1) (d) EA 1989 in conjunction with Annex 1 Schedule A to Standard Condition 33). The tariffs for each technology band have been mapped to the end of the feed-in tariffs in 2019 according to the following table:

          2016 price p/kWh

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1 2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          <100kW

          8.54

          8.53

          8.51

          8.5

          8.48

          8.46

          8.45

          8.43

          8.42

          8.4

          8.39

          8.37

          8.35

          100 - 500kW

          6.14

          6.14

          6.13

          6.12

          6.11

          6.11

          6.1

          6.09

          6.09

          6.08

          6.07

          6.06

          6.06

          500 - 2000kW

          6.14

          6.14

          6.13

          6.12

          6.11

          6.11

          6.1

          6.09

          6.09

          6.08

          6.07

          6.06

          6.06

          2000- 5000kW

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          4.43

          • ‘Contingent degression’. ‘Contingent degression’ allows the degression rates to be adjusted depending on the actual levels of deployment under the FITs. The tariffs will be reduced by 10% when the deployment in any technology band hits the caps set by the government. The defined caps are the following:

          Maximum Deployment (MW)

          Q1 2016

          Q2 2016

          Q3 2016

          Q4 2016

          Q1 2017

          Q2 2017

          Q3 2017

          Q4 2017

          Q1 2018

          Q2 2018

          Q3 2018

          Q4 2018

          Q1 2019

          <100kW

          1.1

          1.1

          1.2

          1.2

          1.2

          1.3

          1.3

          1.3

          1.3

          1.3

          1.4

          1.4

          1.4

          100 - 5000kW

          6.1

          6.2

          6.3

          6.3

          6.4

          6.4

          6.4

          6.4

          6.4

          6.4

          6.4

          6.3

          6.3

          Cap

          From 8 February 2016, all new installations applying for FITs on or after 15 January 2016 are subject to a new system of caps. Inter alia, from February 2016 until April 2019 a maximum of GBP 100 million (approx. € 117.134 million) will annually be allocated for new installations allocated between technologies. Deployment caps, expressed in terms of aggregate total installed capacity of MW, are set on a quarterly basis. (see Section on degression for the defined caps on each technology). For the period 1 October 2016–31 December 2017, the caps for PV standalone, Wind 50-100kW, Wind 100- 1500kW and AD have already been reached. More specifically, PV standalone caps were reached on 31 March 2016, Wind 50-100kW on 12 August 2016, Wind 100-1500kW on 7 April 2016 and AD on 2 March 2016 (Feed-in Tariff Deployment Caps Quarterly report-Tariff Period 4).

          Eligibility period

          The eligibility period for FIT is as follows: 

          • 20 years: PV, wind, hydro and anaerobic digestion 
          • 25 years: PV with the eligibility date before August 2012 – 25 years
          • 10 years: micro-CHP 

          (art. 6 (1) (d) EA 1989 in conjunction with Annex 1 Schedule A to Standard Condition 33)

          Distribution of costs

          Consumers

          The FiT payments, borne by the licencees (Schedule A to Standard Condition 33 in conjunction with art. 4-6 FTO 2012), are usually included in the final consumers’ energy bills.

          Distribution mechanism

          The Ofgem carries out a process of levelisation to make sure that the costs of participating in the FiT scheme are proportionate for each licensee. Every licensee makes a certain payment to a levelisation fund which is then redistributed by the Ofgem to the different licensees (art. 25-30 FTO 2012). Shortfall in the levelisation fund, resulting from the failure to make whole or part of levelisation payment to Ofgem by electricity supplier(s), may lead to the so called mutualisation process, i.e. other suppliers will be required to make additional payments to address the shortfall in the levelisation fund (art. 30A FTO 2012). The actual FiT payments are not accounted for in this system (art. 27 (6) FTO 2012).

          United Kingdom

          Further information

          Basic information on legal sources