The scheme and recent changes in a nutshell

The government scheme is designed to reward home owners and businesses to generate 'clean' energy.  As a reward, investors in microgeneration systems can claim a Feed-In-Tariff (FIT), which is paid by the energy supplier (compulsory for the 6 largest energy suppliers).  The FIT rate varies depending on the technology used to generate the energy.

The FiT as of the 3rd March 2012 is currently 21p per kWh for domestic installations up to 4kWp. 

The 1st April 2012 saw the introduction of a requirement for buildings on which solar pv systems are to be installed to be energy rated.  The Energy Performance Certificate (EPC), must demonstrate that the property exceeds a banding of D or better for the full Feed-in Tariff of 21p to be claimed.  Properties which do not meet this criterion, the FIT will be 9p per kWh.

PV technology system secures the FIT for 25 year.  Payments are tax free and are index linked.  Payments are usually paid quarterly by the energy supplier based on reading from the total generation meter (meter installed during the installation to record the energy produced).  A FIT can only be claimed if a PV system is installed and certified by MCS (Microgeneration Certification Scheme), accredited installers like Sun Catcher.

For more detailed explanation of the Feed-in-Tariff follow the DECC link.