Solar PV - Feed In Tariff

A PV system produces savings in electricity bills because electricity generated during daylight hours will automatically flow to appliances that are consuming electricity during the day. Therefore, electricity bills will be reduced depending on how much electricity is used during the day.

Two income streams will also be achieved. The owner will receive the Feed in Tariff payment (see table) for every unit (kWh) of electricity produced. The owner will also be paid for the electricity they export. For domestic systems, the amount exported is ‘deemed’ to be 50% of the generated amount which will be purchased by your utility company at 4.8p per kWh. For commercial systems there are options for export metering depending on the size of the system.

PV System Incentives

Since the start of the government’s Feed In Tariff scheme (or FITs) there has been a rapid uptake of PV systems. This is because the FIT scheme provides a guaranteed rate of return making a PV system a compelling investment. The FIT scheme is designed to drive down the cost of installations so that PV technology eventually becomes competitive with fossil fuel generation from fuels such as gas and coal. Some commentators think that ‘grid parity’ will occur around 2020.


System sizeFIT rate p/kWhNotes
0-4 kWp TBC Most domestic systems fall into this size
4-10 kWp TBC Domestic and commercial systems
10-50 kWp TBC  
50-100 kWp TBC  

Here are some important facts about the economics of a PV system:

When a PV system is installed, it will receive a guaranteed rate of Feed in Tariff for 20 years that will increase annually with inflation. Any reductions to the FIT only apply to installations that occur after the date on which it is reduced.

The FIT payment is made on every unit of electricity generated whether it is consumed by the owner or exported to the grid.

The system cannot be moved to different sites or have the modules replaced with a different type and still receive the FIT. 

An energy performance certificate with a rating of D or higher is required for buildings that are heated or cooled (such as homes, offices, etc). Norfolk Solar can arrange an EPC to be undertaken. Often, the installation of a PV system is sufficient in increasing the rating to D. Buildings with a rating of lower than D can not receive the FIT at the highest rate.

The exact tariffs paid on electricity generated by such systems varies depending on system size, building type and when the system is installed. Please see the table for current rates. In order to receive the rate of tariff advertised your building will need an epc rating of band "d" or above.