Install energy-generating technology such as Solar PV and under the Government’s Feed-in Tariffs (FIT) scheme you could earn money back from npower. You could be paid both for electricity you generate and surplus electricity that we can export back to the National Grid. What’s more you could be saving on electricity bills too.
Please be aware, the information on this page relates to applications for new installations with an MCS certificate issued on or after 15 January 2016.
This year Ofgem announced the release of deployment caps for new installations, this means when we receive your eligible application, it will be registered based on the deployment cap rules; the MCS issue date and time will determine what tariff rate you will be offered but, your eligibility date (the date you are eligible to receive FIT Payments from) will depend on the latter of:
- The date we receive your eligible FIT application; or
- The first day of the tariff period that you installation falls into.
Please therefore take meter readings from your generation meter and export meter (when you have an export meter) on the date you send your completed application form to us and then, on the first of every month thereafter until you hear from us to ensure you receive accurate FIT payments.
To ensure that you receive the higher tariff, you must provide an Energy Performance Certificate of Level D or above. For all applications received on or after 10th May 2016, the EPC you provide must be dated before the commissioning date of your system to receive the higher tariff.
As part of this new guidance, unfortunately any additional capacity which you have added to your existing installation, is not eligible for FIT Payments.
You could be paid both for electricity you generate and surplus electricity that is exported back to the National Grid.
Reduce your electricity bills
Generating your own clean, sustainable electricity to run your lighting and home appliances means you are likely to buy less electricity from your supplier, so your electricity usage may reduce.
Earn money for exporting electricity
Where export is permitted to be deemed, the Secretary of State determines the percentage of Electricity deemed to be exported. Such a determination is published at least one month before the beginning of each FIT year.
Both generation and export tariff rates are index-linked which means that they increase and decrease with inflation. The tariff rates are adjusted annually by the percentage increase or decrease in the Retail Price Index over the 12 month period ending on 31st December of the previous year.
The energy regulator, Ofgem, administers the Feed-in Tariffs scheme but your electricity supplier makes FITs payments. There are three ways you can benefit from Feed-in Tariffs:
Reduce your electricity bills – generating your own clean, sustainable electricity to run your lighting and home appliances means you are likely to buy less electricity from your supplier, so your electricity bills may be lower.
This rate depends on when you register for FITs but it is guaranteed for the period of the tariff (as defined in your FIT plan letter) and will increase or decrease with inflation, in line with the Retail Prices Index.
Earn money for exporting electricity – surplus electricity that you generate but don’t use can be exported back to the national grid. Subject to eligibility you would earn 4.91p/ kWh for electricity that you sell back to your supplier.
A full list of Feed-in Tariffs is available from the Ofgem website.
An example of how Feed-in Tariffs work
1 Electricity is generated by solar panels. Your electricity supplier pays you for each unit of electricity you generate. You can use the electricity you generate meaning you don’t have to import from the grid.
2 You export electricity back to the grid when you don’t use it. Where export is permitted to be deemed, the Secretary of State determines the percentage of Electricity deemed to be exported.
3 You only import electricity from the Grid when you require additional power.
What you could get with Feed-in Tariffs
The money you can earn through Feed-in Tariffs varies according to the technology you install. For a full list of Feed-in Tariffs please visit the Ofgem website. A 4kW installation which has been registered and the eligibility date falls within the period 1 April - 30 June 2016 could generate an annual income of £231 in FIT Payments and save £62 on your annual electricity bill. This is based on a property which has achieved an EPC Level of D and above.
Solar PV system size
Annual payment from generation tariff at 4.32 p/kWh
Annual payment from export tariff at 4.91 p/kWh
Annual fuel bill savings
Total payment and savings (1st year)
The above figures are explained as follows:
Solar PV system
In accordance with MCS guide lines, please note that the performance of solar PV systems is impossible to predict with certainty due to the variability in the amount of solar radiation (sunlight) from location to location and from year to year. This estimate is based upon the standard MCS procedure is given as guidance only. It should not be considered as a guarantee of performance.
The figures above are based on a 4kW installation on a south facing, 30 degree roof with no shading located in WR4 post code area, with an eligibility date between 1 April - 30 June 2016. Export income assumes 50% of generation exported onto the grid at DECC's current export tariff of 4.91. Actual performance may be significantly lower or higher if the characteristics of the installed system vary from the estimated values.
Figure assumes annual generation of 3,419kWh and based on DECC's current Feed-in Tariff (as at 1st April 2016) generation rate of 4.32p p/kWh for customers with a Solar PV system under 10kW with an EPC Band D or above before the systems commissioning date. www.ofgem.gov.uk/fits.
Figure assumes 50% of amount generated being exported back on to the grid and based on DECC’s current export tariff (as at 1st April 2016) of 4.91p.
Electricity Bill Savings
Figure based on year zero costs with no degradation or inflation applied, and calculated using the Energy Saving Trust’s 2015/2016 estimated average electricity price of 13.86p/kWh for a 3-bedroom gas heated home in the UK which uses about £55/month of electricity (this is around 4,500 kWh each year). Assumes 50% of all electricity generated will be used in the home.
What you could get with FITs:
The figures above are provided for illustrative purposes only and does not constitute financial advice. No two installations of the same type and scale are likely to produce the exact same level of generation each year for the same cost, and thus generation and export figures can vary between installations. Actual electricity bill savings are dependent upon occupancy patterns and individual behaviour and circumstances. Does not include any installation costs, maintenance costs or tax implications.
Tax free generation
Tax free generation: Generation and export income is tax free provided that the income is not received in a business capacity (e.g. the individual must not be running a business from their house) and that the individual is not providing a form of service or facility in connection with the electricity being generated. However, the income is subject to VAT if the generator is VAT registered. See solar panels for more information.
Whilst npower has made all reasonable efforts to ensure that all information on its website is accurate at the time of inclusion, please note our Legal Disclaimer.
Registering for the Feed-in Tariff
You can request a FIT application form by contacting us:
When you have obtained your application form you will need to fill it in and return it to us by either email or post.
You will require:
Microgeneration Certificate Scheme (MCS) certificate or ROO-FIT certificate (if over 50kw) for your installation to complete the application form. If you have not yet received this please contact your installer.
Proof of Ownership (i.e. an invoice that demonstrates the owner of the installation)
An Energy Performance Certificate or official exemption letter (PV installations only)
Signed Multi-Installation Declaration as set out in the application form.
Proof of Photographic ID (such as a copy of a Passport or Driving Licence) - Domestic Customers Only. Please do not send originals.
Proof of address (such as a copy of a Utility Bill or Council Tax invoice). Please do not send originals.
A valid generation meter reading and export meter reading where applicable
What is a valid meter reading?
At this stage we will tell you the date on which you will be eligible for FIT payments from and at what FIT rate therefore we require a meter reading on this date. Please keep a record of generation meter readings and export meter readings (where you have an export meter) on the first day of each month until we have been in contact with you
Your eligibility date
The Department of Energy and Climate Change announced the outcome of its review of Feed-in Tariffs on 17th December 2015. As a result of this review the Feed-in Tariff Scheme was paused for 3 weeks from the 15th January to 7th February 2016 (inclusive). This meant we were not able to register applications with Ofgem until the 31st March 2016 . We are now able to register applications with Ofgem and if we receive your application form during an open tariff period (and your installations falls within this period) you will hear from us within four weeks to confirm that we have registered your application. At this stage we will tell you the date on which you will be eligible for FIT payments from and at what FIT rate. Please ensure that you keep a record of your generation meter reading and where applicable export readings on the 1st of each month following you sending us your application form, we will contact you for a meter reading when we come to register your application. If the application form is incomplete, we will return it to you and ask you to re-apply. If you have any queries about the above please refer to http://www.ofgem.gov.uk/FITSwww.ofgem.gov.uk/FITS
If you have any further enquiries you can find answers to frequently asked questions. Alternatively, please call us on 0800 048 0520 or 0330 100 7567.
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Phone calls: We may monitor and/or record calls for security, quality or training purposes. Calling us on an 0800 number should be free from all mobiles and generally free from all landlines. Calling us on a 0330 number will cost you no more than 01 or 02 numbers from landlines or mobiles. If you get ‘inclusive minutes’ with your package, calls to a 0330 number will be part of these.
FIT scheme: Subject to eligibility. To join npower’s FIT scheme, you must be an npower electricity customer or with an energy supplier who does not offer a feed-in tariff. Other terms and conditions apply. See terms and conditions for further details.
Electricity bill savings: Actual electricity bill savings are dependent upon occupancy patterns and individual behaviour and circumstances.