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Feed in Tariffs

The Feed-in Tariff scheme

The Feed-In Tariff (FIT) scheme is an environmental programme aimed at promoting widespread uptake of a range of small-scale low carbon electricity generation technologies. The FIT scheme requires certain Licensed Electricity Suppliers to pay fixed tariffs to micro and small renewable and micro CHP generators for electricity generated and exported to the National Grid.

The FIT scheme policy and tariff rates are set by the Department of Energy and Climate Change (DECC), but the scheme is administered by FIT Licensees and Ofgem.

How the scheme works

You’ll get a set amount for each unit (kilowatt hour or kWh) of electricity you generate. The rates vary depending on:

the size of your system

what technology you install

when your technology was installed

who puts the technology in place - you need to use a certified installer to qualify for FITs (to find a certified installer please visit

www.microgenerationcertification.org/installers-manufacturers/installers-manufacturers

Please note: The contract length and tariff rates vary depending on the technology type and eligibility date.Who to contact

For information on domestic and business electricity generation and how to join the FITs scheme, contact the Energy Saving Trust on 0300 123 1234

For information on how the FIT scheme works visit Click here

For information on how to sign up for the FIT scheme with SSE please visit

www.southern-electric.co.uk/BeingGreen/FeedInTariff/ 

or call and speak to one of our customer service representatives on SSE FIT Bureau on 08450 76 76 34.

For information on accreditation of installations below 50kW and general information on products and installers, contact Gemserv on 020 7090 1082.

For general queries regarding FIT accreditation of wind and solar PV installations between 50kW and 5MW and all hydro and anaerobic digestion installations, email renewable@ofgem.gov.uk or phone 020 7901 7310.

How will the Feed in Tariff affect SSE customers?

The unit cost for all suppliers across Great Britain for each year starting 1 April is dependent on the amount of generation from these small installations and the tariff rates applicable depending on their technology type, energy efficiency rating and eligibility date. The amount of generation will depend on the equipment availability (Load Factor) which may be weather dependent. There are also some small administration allowances per installation.

The final total cost for the year is not declared by DECC until the following September.

Forecasting of current and future year costs needs to take into account existing installations, their expected generation, the tariff rate they are on, subject to RPI revision. Also, any new installations and rates that the government may set for these and any changes to the administration allowances. This will include the costs of any exported generation.

There has been a ten fold increase in installed capacity over the last charging year (2012) which has made forecasting very difficult. However, we now expect a more restrained take-up since the introduction of much reduced tariffs for new installations by the Government. This will enable us to make a more stable prediction. The cost to all suppliers is a unit based charge and is calculated after the charging year.

SSE like all suppliers is exposed to this increasing additional cost and as per our standard Terms and Conditions will pass this on to our customers. We will include a separate item to cover FiTs in all contract offers and subsequent billing. The flat rate charges covering 2013 to 2017 are shown below, however, for contract terms greater than 1 year an average rate will be applied.

 

SSE FiTs Forecast

Fit Year

Charge

13/14

£2.54/MWh

0.254 p/kWh

14/15

£2.85/MWh

0.285 p/kWh

15/16

£3.28/MWh

0.328 p/kWh

16/17

£3.70/MWh

0.370 p/kWh

 

Other useful links

Government Tariff Levels
Department of Energy and Climate Change

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