FAQs
Do I get FITs if I install a new system on an old RO site?
We believed so, but we asked Ofgem, just to be sure.
They confirmed:
The FITs Order does not discuss the building of new generating stations on the site of a previous station. Part 4 of the Order does however discuss extensions to accreditations. Assuming that the installation is completely new and not an extension to the previous generating station and that it does not utilise any residual apparatus from the previous generating station, it is unlikely that positioning a station on the site of a previous generating station would affect the eligibility of the station for FITs or that previous RO accreditation would have an impact.
Which is better financially for larger systems, FITs or ROCs?
The government has tried to set the tariffs for larger systems at about the same level as the RO.
The decision on which to go for will depend on your view of the administration associated with each option, and the certainty of the price you will get under each (ROC and electricity prices are both variable and can be volatile at times).
What are the arrangements for systems already registered for the RO and wanting to transfer to FITs?
Systems under 50kW and registered for the RO must transfer to the FITs.
Systems between 50KW and 5MW have the choice of whether they convert.
Systems above 5MW cannot transfer - they have to stay in the Renewable Obligation.
Can systems already registered for ROCs stay in the RO?
Only if they are above 50kW. Smaller systems will generally have to transfer to the Feed-In Tariffs.
Can the Tariffs be applied for if the company is taking part in the Carbon Reduction Commitment?
The government intends to treat energy which earns tariffs the same way as ROC-earning generation (i.e. it would not qualify as zero emissions but would have to be assigned emissions at the grid average).
The only way of getting full renewable credit under the CRC, therefore, is not to register for Feed-In Tariffs, the Renewable Heat Incentive or the Renewables Obligation.
We think this is inappropriate and are making representations accordingly.
Can builders claim FITs on installations under the Code for Sustainable Homes?
Yes they can. The government has accepted that this would be a good way of helping builders cover any additional costs in achieving Zero Carbon Buildings.
Can renewable systems claim both the Feed-in Tariffs and the Renewables Obligation?
No. Systems are only eligible for one of the schemes. Small systems will have to use the Feed-In Tariffs and large systems, above 5 megawatts, can only use the RO. Systems between 50kW and 5MW get a one-off choice of FITs or RO, but won’t be able to claim both or to chop and change.
Will grants have to be repaid?
The tariffs are available to all energy systems, whether they have received grants or not.
However, for a long time it was believed many of the grants would have to repaid if a system is to be registered for the Tariffs.
It all depended on the grant scheme:
- LCBP Low Carbon Buildings Programme - householders (Stream 1): No need to repay
- LCBP Low Carbon Buildings Programme - commercial (Stream 2): Yes - must repay (BUT SEE BELOW!)
- Energy Saving Scotland Home Renewables (formerly SCHRI): No need to repay
For many other grant schemes it is still unclear if grants need to be repaid, including
- RDPE, the Rural Development Programme for England
- YESS, the Young Entrant Support Scheme in Wales
- SRDP, the Scottish Rural Development Programme - Scottish Government currently awaiting clarification from DECC and OFGEM. Final decision expected by end of May
For these schemes, it will be best to ask the grant administrators.
If you get a definitive answer, please let us know!
Update on LCBP grants. In September, DECC made the following clarification on whether a LCBP2 grant needs repaying:
Final decisions on eligibility are the responsibility of Ofgem. Ofgem may not accredit for FITs any installation that has received a grant from a public body except in certain circumstances. These exemptions are:
i. Permitted grants (as specified in Article 8 of the Order) i.e. those made before 1st April 2010 in respect of the costs of:
- an eligible installation commissioned before 15th July 2009; or
- an eligible installation on a residential property commissioned between 15th July 2009 and 31st March 2010
ii. Those complying under de minimis regulation:
Recipients of publicly funded grants for a plant will be eligible for the FIT scheme for that plant without having to repay the moneys received if they are in compliance with the EU’s rules on de minimis aid - i.e. if they have not received support from public funds (including FITs payments) that would exceed thresholds specified in de minimis regulations (€200,000 over a period of three years in most cases).
Note: this means that many generators who were previously expected to be ineligible for both FITs and grants e.g. under the Low Carbon Buildings Programme (LCBP) may now be eligible.
iii. Those who can demonstrate that a publicly funded grant is for justifiable non-standardised costs
Non-standardised costs are those additional costs incurred as a result of measures taken to reduce the environmental impact of an installation.
If I register for ROCs, can I receive the Feed-In Tariffs?
You cannot claim both Feed-In Tariffs and ROCs.
However, if you have a renewable energy system that was installed before July 2009 and was registered for the Renewables Obligation, you are eligible to switch to the Feed-In Tariffs.
