The Feed-in Tariff

Paying homes and businesses

for electricity produced as well
as electricity exported to the grid.

Helping our
our customers.
customers.
Were on
on it.
it.

The Government launched the Feed-in Tariff (FiT)

to encourage homes and businesses to generate
their own renewable, low carbon electricity.
Most small-scale renewable generation technologies
qualify for the scheme, including solar photovoltaic
(PV) panels, wind turbines, hydroelectricity, anaerobic
digesters and micro combined heat and power (CHP).

The scheme pays generators for every kWh of electricity produced and for any
electricity exported to the grid, as long as theyre registered with Ofgem by an
energy supplier like us. All energy suppliers pay towards the FiT fund, based on
their share of the energy supply market. Ofgem administers the scheme with key
decisions being made by the Department for Energy and Climate Change (DECC).

Why is the charge increasing?

The UK is generating more renewable energy than ever before, especially from
solar PV, with the number of installations rising from less than 20,000 to more
than 415,000 in recent years.
That means more FiT qualifying electricity is being generated and more FiT
payments are being made.
As a result, the amount of money energy suppliers have to pay into the fund
has increased.
 Feed-in Tariff
/MWh Quarterly unit rate Annualised rate

3.5
3
2.5
2
1.5
1
0.5
Jul 10 Sep 10

Oct 10 Dec 10

Jan 11 Mar 11

Apr 11 Jun 11

Jul 11 Sep 11

Oct 11 Dec 11

Jan 12 Mar 12

Apr 12 Jun 12

Jul 12 Sep 12

Oct 12 Dec 12

Jan 13 Mar 13

Apr 13 Jun 13

Jul 13 Sep 13

Oct 13 Dec 13

Jan 14 Mar 14
Apr 10 Jun 10

Source: Data derived from levelisation fund and relevant electricity supplied
data published in Ofgems quarterly levelisation report.

Whats likely to happen in the future? A choice of ways to pay:

At the moment, Ofgem are reviewing the number of new M
 ore certainty on your prices for greater peace of mind
eligible assets every three months and, depending on If you want more certainty of your energy costs and want
how many there are, they may reduce tariffs in the future. to know what your FiT rate is likely to be throughout your
Similarly, the Government has also lowered tariffs at certain contract, we can base the charge on our own forecast.
capacity levels for all new installations, including PV. These Your quoted unit rate will include the FiT charge.
changes only affect new installations though, so whilst
P
 ass through for greater flexibility
it will slow the rate of increase, we expect the scheme to
If you want to pay the actual charge, we can pass it
keep growing along with the cost. By 2016 we forecast that
through to you when we invoice instead of including it in
the cost is likely to be in the range of 3.504 per MWh
your unit rates. To help you plan ahead, well still provide
compared with 1.67 per MWh in 2012/13.*
an estimated cost as part of your quote. Your invoice will
include the FiT charge based on our latest forecast,
How we charge
which well reconcile in line with the published quarterly
As a third party cost, the FiT charge makes up part of or annual levelisation rates.
your electricity bill and we want to be as clear as possible
about how we charge you. FiT costs depend on how much What can I do to lower the charge?
electricity is generated from installations in the scheme.
Your FiT cost is based on the energy you use, as well as the
Ofgem will publish these costs in arrears (through the
published FiT rates, so you could lower the cost by using
FiT Levelisation process) so we dont know what theyll
less electricity.
be in advance.
*Based upon annual levelisation payments as confirmed by Ofgem.
However, by keeping a close eye on developments in the 
There are times when we may change your prices. Please see Terms
FiT scheme, including the number of accredited installations and Conditions for details.
and changes in tariff payments, we can forecast these
costs and predict what your FiT rate is likely to be to help To find out more visit:
you budget.
gov.uk/feed-in-tariffs
Were here to help
Our dedicated team is here to help,
whatever your business needs.
Call 02476 424242 (select option 3 for Corporates)
Were here from 8.30am - 5pm Monday to Thursday
and 8.30am - 4pm on Friday.
Or visit eonenergy.com/corporates
The information (including any forecasts or projections) contained in this document (the Information) reflects the views and opinions of E.ON on 4 July 2014. The Information
is intended as a guide only and nothing contained within this document is to be taken, or relied upon, as advice. E.ON makes no warranties, representations or undertakings
about any of the Information (including, without limitation, any as to its quality, accuracy, completeness or fitness for any particular purpose) and E.ON accepts no liability
whatsoever for any action or omission taken by you in relation to the Information. Any reliance you place on the Information is solely at your own risk. This document is the
property of E.ON and you may not copy, modify, publish, repost or distribute it. E.ON 2014

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