Managing your Feed-in Tariff agreement

The Feed-in Tariff (FiT) scheme closed to new applications on 31 March 2019. However, if you're a UK homeowner with an existing renewable energy system, understanding and managing your FiT agreement remains crucial. This guide provides clear, actionable steps to navigate your payments, transfer suppliers, and understand the scheme's successor, the Smart Export Guarantee (SEG).

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What is the Feed-in Tariff (FiT) scheme?

The Feed-in Tariff (FiT) scheme was a government programme designed to promote the uptake of small-scale renewable and low-carbon electricity generation in Great Britain. It provided payments to individuals and organisations who generated their own electricity, primarily from solar panels or wind turbines.

How the FiT scheme worked

Under the FiT scheme, eligible generators received payments for the electricity they generated, whether they used it themselves or exported it to the grid. These payments were made by licensed energy suppliers, known as FiT Licensees, who were obligated to administer the scheme. Existing Feed-in Tariff contracts typically run for 20 years from the installation's commissioning date, ensuring continued payments for those who joined before the scheme closed.

FiT payment components: generation and export tariffs

FiT payments generally consisted of two main components:

• Generation tariff: This was a payment for every unit (kilowatt-hour or kWh) of electricity your system generated, regardless of whether you used it in your home or exported it. The rate was fixed for the duration of your contract.
• Export tariff: This was an additional payment for any surplus electricity your system generated and fed back into the National Grid. This rate was often a flat rate per kWh, though some agreements included deemed export where a percentage of generation was assumed to be exported.

Why the FiT scheme closed

The FiT scheme closed to new applications on 31 March 2019, following a review by the government. The primary reason for its closure was the significant decrease in the cost of renewable energy technologies, particularly solar photovoltaic (PV) panels, making the subsidies less necessary to encourage adoption. The government determined that the industry could stand on its own without the need for further FiT support.

Managing your existing Feed-in Tariff agreement

For those with active FiT agreements, managing your payments effectively ensures you receive all the benefits you're entitled to.

Identifying your FiT licensee

Your FiT licensee is the energy supplier responsible for making your Feed-in Tariff payments. This might be your electricity supplier, or it could be a different company. If you're unsure who your FiT licensee is, you can usually find this information on your FiT statements or by contacting your current electricity supplier, who should be able to direct you. Ofgem, the UK's energy regulator, oversees the Feed-in Tariff scheme and provides official guidance for participants and licensed suppliers.

Submitting meter readings for FiT payments

Accurate meter readings are essential for correct FiT payments. Most FiT agreements require you to submit regular generation meter readings to your FiT licensee. This meter measures the total electricity your renewable system produces.

Your licensee will provide details on how to submit these readings, which can often be done online, by phone, or via an app. Failure to submit readings on time may result in estimated payments or delays.

Understanding your FiT payment statement

Your FiT payment statement provides a breakdown of your earnings. It will typically show:

• Generation meter reading: Your start and end readings for the payment period.
• Total generation: The amount of electricity generated (in kWh) during the period.
• Generation payment: The amount you're paid for this generation, calculated by your generation tariff rate.
• Export payment: If applicable, the amount you're paid for electricity exported to the grid.
• Payment date: When you can expect to receive the funds.

Reviewing these statements helps you track your system's performance and confirm the accuracy of your payments.

Transferring your Feed-in Tariff supplier

You have the right to switch your FiT licensee, even if you remain with the same electricity supplier for your imported energy.

Reasons to switch your FiT supplier

Homeowners might consider switching their FiT licensee for several reasons:

• Better customer service: You might be unhappy with the support or responsiveness of your current FiT licensee.
• Consolidation: You may prefer to have your FiT payments handled by the same company that supplies your electricity, simplifying your energy management.
• Administrative ease: Some suppliers offer more user-friendly platforms for submitting readings or managing your account.

Step-by-step guide to transferring your FiT

Transferring your FiT agreement typically involves these steps:

1. Research potential licensees: Look for energy suppliers that are active FiT licensees and accept transfers.
2. Gather your documents: You'll need your FiT Statement of Terms, Microgeneration Certification Scheme (MCS) certificate (or equivalent), and recent generation meter readings.
3. Contact your chosen supplier: Inform them you wish to transfer your FiT agreement. They will guide you through their specific application process.
4. Provide necessary information: This will include your personal details, property address, and details of your renewable energy system.
5. Finalise the transfer: Your new licensee will coordinate with your old one to complete the transfer. This process usually takes a few weeks.

What to expect during a FiT transfer

During a FiT transfer, there might be a short period where payments are paused as the accounts move between suppliers. However, you should not lose any payments; any outstanding amounts will be reconciled by your previous or new licensee. Ensure you keep records of all meter readings and communications throughout the process.

Moving home with a Feed-in Tariff system

Moving house with a renewable energy system that benefits from FiT payments introduces specific considerations for both sellers and buyers.

Selling a property with an active FiT agreement

If you're selling a property with an active FiT agreement, the agreement is typically tied to the property and the installation, not to you as the individual homeowner. This means the FiT payments will transfer to the new owner.

As the seller, you should:

• Inform your buyer: Make sure potential buyers are aware of the FiT agreement and its benefits. This can be a selling point for your property.
• Provide documentation: Hand over all relevant FiT paperwork, including the original FiT Statement of Terms, MCS certificate, and a history of meter readings and payments.
• Notify your FiT licensee: Inform your licensee of the change of ownership and provide them with the new owner's details and the date of sale.

Buying a property with an existing FiT system

If you're buying a property with an existing FiT system, you will inherit the remaining term of the FiT agreement. This means you'll become eligible to receive the generation and export payments.

As the buyer, you should:

• Request all FiT documentation: Ensure the seller provides all necessary paperwork to prove the system's eligibility and the existing agreement.
• Contact the FiT licensee: Get in touch with the current FiT licensee to inform them of the change of ownership and set up the payments in your name. They will require proof of ownership and the relevant system details.

Notifying your FiT licensee when you move

Whether you are selling or buying, it is crucial to notify the FiT licensee promptly about the change of ownership. This ensures a smooth transition of payments and avoids any disruption. Provide them with the exact date of the property transfer and the contact details of the new or previous owner.

The Smart Export Guarantee (SEG): the FiT's successor

The SEG is the government-backed scheme that replaced the Feed-in Tariff for new renewable energy installations. It came into effect on 1 January 2020.

How SEG differs from FiT

The key differences between SEG and FiT are:

• Export-only payments: Unlike FiT, which paid for both generation and export, SEG only provides payments for the electricity you export to the grid. There is no generation tariff under SEG.
• Market-led rates: Under SEG, licensed energy suppliers must offer an export tariff, but the rates are set by the market, not by the government. This means rates can vary significantly between suppliers.
• Smart meter requirement: To benefit from SEG, you need a smart meter that can send half-hourly readings of your exported electricity.

Eligibility for the Smart Export Guarantee

To be eligible for SEG, your renewable energy system (such as solar PV, wind, hydro, micro combined heat and power (micro-CHP), or anaerobic digestion) must:

• Have a total installed capacity of up to 5MW (megawatts), or 50kW (kilowatts) for micro-CHP.
• Be certified under the MCS or an equivalent scheme.
• Have an export meter capable of providing half-hourly readings.

Ofgem, the UK's energy regulator, also oversees the SEG scheme, requiring licensed energy suppliers to offer export tariffs.

Maximising your export earnings with SEG

If you have a new renewable energy system, or if your FiT agreement has ended, switching to an SEG tariff is your way to earn money for your exported electricity. To maximise your earnings:

• Compare SEG rates: Shop around to find the best SEG tariff. Rates vary, so comparing offers from different suppliers is essential.
• Optimise your export: Consider how you use energy. If you can shift your consumption to when your system is generating, you'll reduce imports. Exporting surplus energy when rates are highest can further boost your earnings.
• Consider battery storage: A home battery can store excess electricity generated during the day, allowing you to use it later or export it when SEG rates are more favourable.

Fuse Energy offers a SEG rate of 13p per kWh for exported electricity. This competitive rate helps homeowners with eligible systems maximise their earnings from their clean energy generation.

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