On this page: What is the scheme | Eligibility | Applying | Role of Suppliers and the Microgeneration Certification Scheme | Ofgem's role | Existing Renewable Obligation Generators | Further information
What is the Feed-in Tariff Scheme (FITs)?
See our factsheet for a simple guide to FITs.
The new Feed-in Tariff (FIT) scheme, sometimes referred to as ‘Clean Energy Cashback’, is available through licensed electricity suppliers. The scheme is intended to encourage the uptake of small-scale low carbon technologies up to 5MW, through tariff payments made on both generation and export of produced renewable energy.
The Energy Act 2008 contained enabling powers for the introduction of a Feed-in Tariff for small-scale low-carbon electricity generation in Great Britain, up to a maximum limit of 5 megawatts (MW) capacity, The Secretary of State for Energy and Climate Change has used those enabling powers to introduce the FIT scheme through changes to electricity supply licences. The Feed-in Tariffs (Specified Maximum Capacity and Functions) Order 2010 (“the FITs Order”) came into effect on 1 April 2010.
The scheme policy and tariff rates are set by the Government, with the scheme itself administered by energy suppliers and Ofgem. The Energy Saving Trust and the Carbon Trust have been nominated by the Government to provide public information on the scheme and advice on how to apply. The Energy Savings Trust can be contacted at 0800 512 012 or by going to the Energy Saving Trust website - link opens in a new browser window. Additionally information for businesses wishing to participate in the scheme can be found by contacting the Carbon Trust at 0800 085 2005 or by going to the Carbon Trust website – link opens in a new browser window.
If you are already accredited for the Renewable Obligation (RO) and wish to switch the FITs, further information on how to access the FITs scheme can be found below.
Back to top
Eligibility – Basic overview
The maximum declared net capacity for the renewable installations under the scheme is 5 megawatts (MW), and supports the following technologies:
• Photovoltaic (PV)
• Wind
• Hydro
• Anaerobic digestion
• MicroCHP (pilot programme with a 2kW limit).
Installations applying for the scheme which have a capacity of 50kW or less are required to use Microgeneration Certification Scheme (MCS) eligible products installed by an MCS accredited installer. This requirement does not apply to anaerobic digestion installations or larger installations up to the scheme limit of 5MW.
More information on MCS products and installers can be found on the MCS website - link opens in new browser window.
Back to top
Applying for FITs
To apply for the FIT scheme, installations must receive accreditation for their installation by going through one of two routes:
Installations installed by MCS accredited installers and eligible for the scheme will need to apply for accreditation by contacting a FIT supplier with their MCS installation details.
For installations that are between 50kW and 5MW (or anaerobic digestion at 5MW or less), generators will need to apply for accreditation through the ROO-FIT process via Ofgem’s Renewable and CHP Register.
Further guidance on the ROO-FIT process is available in the RO: Guidance for Generators.
Upon completion of this process, generators will then be required to contact a FIT Supplier with their ROO-FIT details.
Back to top
The role of Suppliers and the Microgeneration Certification Scheme (MCS) under FITs
Suppliers play the main customer-facing role for this scheme. Their role is to take generators through the registration process, take regular meter readings and make payments. Not all suppliers will offer Feed-in Tariffs. Generators are advised to contact their supplier in the first instance to enquire about applying under the scheme. A list of participating suppliers can be found on the Ofgem website.
The role of MCS is to approve and certify microgeneration installations, and maintain a database of installations to facilitate the provision of information and simplify the accreditation process.
Back to top
The role of Ofgem under FITs
Ofgem’s key role is in establishing and maintaining the Central FIT Register, administration of the levelisation process and the accreditation of installations which are greater than 50kW in capacity (or are of anaerobic digestion technology). Ofgem is also responsible for ensuring suppliers comply with the scheme.
Back to top
Existing Renewable Obligation (RO) Generators
The Renewables Obligation (Amendment) Order 2010 (ROAO) amended the Renewables Obligation Order 2009 (ROO) with effect from 1 April 2010 as follows:
Microgenerators (≤50kW)
As of 1 April 2010, microgenerators in the following technologies covered by FITs are no longer eligible for support under the RO:
• Anaerobic Digestion
• Hydro
• Solar PV
• Wind
Microgenerators in these technologies who have applied for accreditation under the RO on or before 31 March 2010 will have this accreditation transferred to the FITs scheme. In the case of wind, hydro and solar PV microgenerators transferring from the RO, they will not be required to meet the MCS accreditation requirements for new microgenerators in these technologies.
However, all microgenerators transferring from the RO will still need to find a supplier in order to access FITs. Generators will need to find a supplier within 6 months of the start of the FITs scheme (i.e. before 1 October 2010) in order to avoid any interruption to their support.
Microgenerators that are accredited under the RO and were commissioned before 15 July 2009 will transfer to FITs at a generation tariff of 9p/kWh and will receive support until 2027. Microgenerators that commissioned and applied for accreditation under the RO on or after 15 July 2009 and before 1 April 2010 will transfer to FITs at the appropriate tariff level for their scale and technology, and will receive support for 20 years (25 years for solar PV). Any microgenerators in a renewable technology not supported through FITs will remain eligible for support through the RO.
Small Generators (50kW - 5MW)
Small generators who had applied for accreditation under the RO before 15 July 2009 will remain in the RO and will not be eligible to transfer to FITs.
Small generators that applied for accreditation under the RO on or after 15 July 2009 and before 1 April 2010 can elect to transfer to FITs. The ROAO requires that small generators wishing to transfer to FITs should provide Ofgem with written notification of their intention no later than 31 August 2010. If such generators wish to transfer to FITs with effect from 1 April 2010, they should notify Ofgem as soon as possible before this date, in order that the arrangements can be made in time. Small generators who make the notification to Ofgem after 1 April 2010 but by 31 August 2010 will be eligible for FITs from 1 April 2011 but in the meantime will remain eligible for ROCs under the ROO.
All small generators transferring to FITs from the RO will need to find a supplier in order to be paid. They will need to do so within 6 months of the date they transfer to FITs in order to avoid any interruption to their support. They will receive the tariff level appropriate to their scale and technology, but the duration of their support will be reduced to reflect the support they will already have received under the RO. To reduce the administrative complexity, all small generators transferring to FITs with effect from 1 April 2010 will have a standard 6 months’ reduction in support, and all small generators transferring to FITs with effect from 1 April 2011 will have a standard 18 months’ reduction in support.
Small generators that commission on or after 15 July 2009 and who have not applied for accreditation under the RO before the FITs scheme comes into force will need to make a one-off choice as to which of the two schemes they wish to join when applying for accreditation.
All small generators who elect to receive support through FITs, whether they transfer from the RO or join FITs directly, will not subsequently be able to receive support through the RO. The one exception to this will be where a generator ceases to be eligible for FITs having added additional capacity to exceed the 5MW maximum. In these circumstances the generator would be eligible to transfer to the RO for the remainder of their duration of support.
Letters have been sent out notifying existing eligible small generators of the options to switch, and include a template to be returned to Ofgem.
Back to top
Current Applications for Accreditation
If you have recently applied under the Renewables Obligation (RO) with the aim of being considered for inclusion under the FITs scheme, the Renewables and CHP team are in the process of reviewing these applications and will be in contact should they have any queries in respect of the information provided to date. On the basis that accreditation is granted under the RO and the relevant additional information is submitted in respect of FITs, the accreditation will be withdraw from the RO and accredited under FITs and you will be eligible to receive FITs payments from 1 April. Please endeavour to regularly check your generator account on the Renewable and CHP register to see if any queries have been raised, since without a full set of answers and eligibility information, we will be unable to accredit you under the RO and hence FITs.
Back to top
Further Information on the FIT Scheme
An explanation of the Government’s policy behind the FIT Scheme can be found in the ‘Government Response to the FIT Consultation ’, available on the Department of Energy and Climate Change (DECC) website - link opens in a new browser window. If you have any comments on the Government proposals or policy then please contact the Department of Energy and Climate Change at enquiries@decc.gsi.gov.uk or by telephone on 0300 060 4000. Information on complaint procedures and processes under the scheme is available from the DECC website.
The Energy Saving Trust (EST) will be the initial port of call for anyone wanting to find out more about home electricity generation and how they can join the scheme. The EST can be contacted on 0800 512 012, or by going to the Energy Saving Trust website - link opens in a new browser window. Businesses looking to participate should contact the Carbon Trust on 0800 085 2005 or by going to the Carbon Trust website – link opens in a new browser window. to find out more.
For any queries relating to VAT with relation to the FIT scheme, please contact HM Revenue & Customs www.hmrc.gov.uk -link opens in a new browser window.
Back to top