British Gas Feed-In Tariff Rates Calculator
Estimate your potential earnings from the British Gas Feed-In Tariff scheme with our accurate calculator.
Comprehensive Guide to British Gas Feed-In Tariff Rates (2024)
The British Gas Feed-In Tariff (FIT) scheme was a government program designed to promote the uptake of small-scale renewable and low-carbon electricity generation technologies. While the scheme closed to new applicants in 2019, many existing participants continue to benefit from these payments. This guide explains how the British Gas Feed-In Tariff works, how payments are calculated, and what you need to know about your eligibility and potential earnings.
What is the Feed-In Tariff Scheme?
The Feed-In Tariff scheme was introduced in April 2010 to encourage the adoption of renewable energy technologies. Under this scheme, energy suppliers like British Gas pay households and businesses for the renewable electricity they generate, even if they use it themselves. The scheme was closed to new applicants on 31 March 2019, but those who registered before this date continue to receive payments for the duration of their tariff (typically 20-25 years).
How Does the British Gas Feed-In Tariff Work?
The scheme operates through three key payment mechanisms:
- Generation Tariff: A fixed payment for every kilowatt-hour (kWh) of electricity generated by your system, regardless of whether you use it or export it to the grid.
- Export Tariff: An additional payment for each kWh exported back to the national grid. This is typically calculated as 50% of your total generation (deemed export) unless you have a smart meter that measures actual exports.
- Energy Bill Savings: You save money on your electricity bills by using the energy you generate instead of buying it from your supplier.
British Gas Feed-In Tariff Rates (2024)
The tariff rates depend on several factors, including:
- The type of technology (solar PV, wind, hydro, etc.)
- The size of your system (measured in kilowatts)
- Your eligibility date (when your system was registered)
- Whether you’re receiving the generation tariff, export tariff, or both
| Technology | System Size (kW) | Tariff Start Date | Generation Tariff (p/kWh) | Export Tariff (p/kWh) |
|---|---|---|---|---|
| Solar PV | ≤ 4kW | 1 Jan 2016 – 31 Mar 2019 | 3.93 | 5.24 |
| 4kW – 10kW | 1 Jan 2016 – 31 Mar 2019 | 3.80 | 5.24 | |
| 10kW – 50kW | 1 Jan 2016 – 31 Mar 2019 | 2.79 | 5.24 | |
| 50kW – 100kW | 1 Jan 2016 – 31 Mar 2019 | 2.14 | 5.24 | |
| Wind | ≤ 1.5kW | 1 Jan 2016 – 31 Mar 2019 | 8.52 | 5.24 |
| 1.5kW – 15kW | 1 Jan 2016 – 31 Mar 2019 | 8.38 | 5.24 |
Note: These rates are for systems registered between 1 January 2016 and 31 March 2019. Earlier registrations may have different rates. The export tariff remained constant at 5.24p/kWh for most of the scheme’s duration.
How to Calculate Your British Gas Feed-In Tariff Payments
To estimate your annual payments from the British Gas Feed-In Tariff scheme, you’ll need to consider:
- Your system’s generation: The total kWh your system generates annually. This depends on your system size, location, and efficiency.
- Your export amount: Either 50% of your generation (deemed export) or the actual amount you export (if metered).
- Your tariff rates: The generation and export tariff rates applicable to your system based on its registration date and size.
The formula for calculating your annual payment is:
Annual Payment = (Generation × Generation Tariff) + (Export × Export Tariff)
For example, if you have a 4kW solar PV system registered in 2018 that generates 3,500 kWh annually:
- Generation payment: 3,500 kWh × 3.93p = £137.55
- Export payment (50% deemed): 1,750 kWh × 5.24p = £91.70
- Total annual payment: £137.55 + £91.70 = £229.25
Eligibility for British Gas Feed-In Tariff
To qualify for the Feed-In Tariff scheme with British Gas, your system must meet the following criteria:
- Your renewable energy system must have been installed and registered before 31 March 2019.
- The installation must have been carried out by a certified installer using certified products.
- Your system must have a total installed capacity of 5MW or less (or 2kW or less for micro-CHPs).
- You must have an Energy Performance Certificate (EPC) rating of D or above for your property (for solar PV installations).
- You must not have already received government funding for your system.
British Gas will require documentation to verify your eligibility, including your Microgeneration Certification Scheme (MCS) certificate, EPC, and proof of installation date.
British Gas Feed-In Tariff vs. Smart Export Guarantee
Since the closure of the Feed-In Tariff scheme to new applicants in 2019, the Smart Export Guarantee (SEG) has become the primary mechanism for paying small-scale generators for exported electricity. Here’s how they compare:
| Feature | Feed-In Tariff (FIT) | Smart Export Guarantee (SEG) |
|---|---|---|
| Availability | Closed to new applicants (31 Mar 2019) | Available to new applicants (from 1 Jan 2020) |
| Payment for Generation | Yes (generation tariff) | No (only exports) |
| Payment for Exports | Yes (export tariff) | Yes (export payments) |
| Tariff Rates | Fixed by government (varies by tech/size/date) | Set by suppliers (must be above 0p/kWh) |
| Contract Length | 20-25 years (depending on tech) | Variable (typically 1-3 years) |
| Eligible Technologies | Solar PV, Wind, Hydro, Anaerobic Digestion, CHP | Solar PV, Wind, Hydro, Anaerobic Digestion, Micro-CHP |
| Metering Requirement | Deemed (50%) or metered exports | Smart meter required for accurate measurements |
If you’re not eligible for the Feed-In Tariff, the Smart Export Guarantee may be an alternative way to earn money from your renewable energy system. British Gas offers SEG tariffs, and you can compare these with other suppliers to find the best rate.
How to Apply for British Gas Feed-In Tariff
If you believe you’re eligible for the British Gas Feed-In Tariff scheme, follow these steps to apply:
- Gather your documentation: Collect your MCS certificate, EPC (if required), proof of installation date, and details about your system.
- Contact British Gas: Call British Gas on 0330 100 0303 or visit their website to start your application.
- Complete the application: Provide all required information about your system and property. British Gas will verify your eligibility.
- Installation of export meter (if required): If you opt for metered exports, British Gas may install an export meter.
- Receive confirmation: Once approved, you’ll receive confirmation of your tariff rates and payment schedule.
- Start receiving payments: Payments are typically made quarterly, though this can vary.
It’s important to apply as soon as possible if you haven’t already, as there may be deadlines for retrospective applications.
Maximising Your British Gas Feed-In Tariff Earnings
To get the most from your Feed-In Tariff payments, consider the following tips:
- Optimise your system’s performance: Regular maintenance and cleaning can ensure your system operates at peak efficiency, maximising your generation.
- Monitor your generation: Use a monitoring system to track your generation and identify any issues promptly.
- Use more of your generated electricity: The more electricity you use yourself, the more you save on your energy bills (though this doesn’t affect your generation tariff payments).
- Consider battery storage: Storing excess electricity for later use can reduce your reliance on grid electricity, increasing your savings.
- Review your tariff: Ensure British Gas is paying you the correct rates based on your system’s registration details.
- Keep records: Maintain records of your generation and payments for tax purposes and to resolve any discrepancies.
Tax Implications of Feed-In Tariff Payments
Feed-In Tariff payments are generally considered taxable income, though there are some exceptions:
- For domestic properties, FIT payments are usually not subject to income tax.
- For businesses, FIT payments are typically treated as taxable income, though you may be able to claim capital allowances on your system.
- VAT is not charged on FIT payments for domestic properties, but businesses may need to account for VAT depending on their registration status.
It’s advisable to consult with a tax professional to understand your specific obligations, especially if you’re receiving payments for a business property.
Common Issues with British Gas Feed-In Tariff
Some customers have reported issues with their Feed-In Tariff payments. Common problems include:
- Incorrect payments: Payments not matching the expected amounts based on generation data.
- Delayed payments: Payments not received on the expected schedule.
- Meter reading disputes: Discrepancies between customer readings and British Gas records.
- Communication issues: Difficulty getting through to the correct department for FIT queries.
If you encounter any issues, you should:
- Check your generation data against your payments to identify discrepancies.
- Contact British Gas’s dedicated FIT team with your account details and evidence of the issue.
- If the issue isn’t resolved, you can escalate your complaint through British Gas’s formal complaints procedure.
- As a last resort, you can refer your complaint to the Energy Ombudsman.
Future of Feed-In Tariffs and Renewable Energy Incentives
The closure of the Feed-In Tariff scheme marked a shift in the UK’s approach to supporting small-scale renewable energy. The Smart Export Guarantee (SEG) is now the primary mechanism, but there are calls for more comprehensive support for renewable energy adoption.
Potential future developments may include:
- Enhanced SEG tariffs: Higher payment rates to better incentivise renewable energy adoption.
- Expanded eligibility: Inclusion of more technologies or larger systems in support schemes.
- Local energy markets: Platforms that allow peer-to-peer energy trading within communities.
- Green energy tariffs: More competitive tariffs for households that generate their own renewable energy.
As the UK works towards its net-zero targets, the role of small-scale renewable energy will likely become increasingly important, potentially leading to new support mechanisms in the future.
Alternative Support Schemes
If you’re not eligible for the Feed-In Tariff, there are other ways to benefit from renewable energy:
- Smart Export Guarantee (SEG): As mentioned earlier, this pays you for the electricity you export to the grid.
- Renewable Heat Incentive (RHI): Though closed to new applicants in 2022, existing participants continue to receive payments for renewable heat technologies.
- Boiler Upgrade Scheme: Offers grants to encourage the installation of heat pumps and biomass boilers.
- Local authority schemes: Some local councils offer grants or loans for renewable energy installations.
- Energy company obligations: Some energy suppliers offer grants or discounts for energy-efficient improvements.
Frequently Asked Questions
How long will I receive Feed-In Tariff payments?
The duration of your Feed-In Tariff payments depends on the technology:
- Solar PV: 20 years
- Wind: 20 years
- Hydro: 20 years
- Anaerobic Digestion: 20 years
- Micro-CHPs: 10 years
Payments are made from your eligibility date (usually the date your system was registered).
Can I switch my energy supplier and keep my Feed-In Tariff?
Yes, you can switch your energy supplier without losing your Feed-In Tariff payments. However, you should inform both your current and new supplier about your FIT agreement. Your new supplier must offer Feed-In Tariff payments (all major suppliers do), and they will take over the administration of your payments.
What happens if I move house?
If you move house, the Feed-In Tariff payments typically stay with the property, not the original owner. This means:
- If you sell your property, the new owner will receive the FIT payments (this can increase your property’s value).
- You should inform British Gas of the change of ownership.
- The new owner will need to provide their details to continue receiving payments.
Do I need to inform British Gas of any changes to my system?
Yes, you must inform British Gas if:
- You make significant changes to your system (e.g., increasing its capacity).
- You change your bank details for payments.
- You move house (as the new owner will need to take over the payments).
- Your system is no longer operational.
Failure to inform them of relevant changes could affect your payments.
Are Feed-In Tariff payments affected by the energy price cap?
No, Feed-In Tariff payments are not directly affected by the energy price cap. Your tariff rates were fixed at the time of your registration and will remain constant for the duration of your agreement, regardless of changes in energy prices.
Authoritative Resources
For official information about the Feed-In Tariff scheme and related policies, consult these authoritative sources:
- Ofgem’s Feed-In Tariff guidance – The official regulator’s information on the FIT scheme, including tariff tables and eligibility criteria.
- UK Government Feed-In Tariffs page – Government information about the scheme, though note that it’s now closed to new applicants.
- Energy Saving Trust – Independent advice on renewable energy and energy efficiency for homes and businesses.