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Feed in tariffs

Understanding the Feed-in Tariff scheme

The Feed-in Tariff (FIT) scheme is an environmental programme aimed at promoting widespread uptake 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 energy and micro Combined Heat & Power (CHP) generators for electricity generated and exported to the National Grid.

SSE is a mandatory Feed-in Tariff licensee and we accept requests for Feed-in Tariff payments from the owners of accredited Feed-in Tariff installations. For further information please take a look here.

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 will 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 (find a certified installer).

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

Who to contact

For information on business electricity generation and how to join the FITs scheme, contact the Energy Saving Trust on 0300 123 1234.
Find more information on how the 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 are 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 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 and 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 was a ten-fold increase in the installed capacity in the charging year 2012/13 which made forecasting very difficult. However, following the introduction of much reduced tariffs for new installations by the Government we are now seeing a more restrained take-up enabling us to make more stable predictions. 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 2017 to 2022 are shown below, however, for contract terms greater than 1 year an average rate will be applied.

Please also note that FITs rates are set and fixed for each contract at the point of acceptance and may vary from the FITs rates shown below.

New FITs rates (effective 09/11/2018)

SSE FITs Forecast
FIT Year FIT Charge
2018/19 £5.38/MWh 0.538 p/kWh
2019/20 £5.62/MWh 0.562 p/kWh
2020/21 £5.85/MWh 0.585 p/kWh
2021/22 £6.10/MWh 0.610 p/kWh
2022/23 £6.36/MWh 0.636 p/kWh
2023/24 £6.64/MWh 0.664 p/kWh