The referral fees are calculated from the average tariff on each system
Payments by suppliers registered for this service will comprise: an annual registration fee, and a charge for each referral, payable monthly.
The referral fee is calculated as 5% of the average annual income – rounded to the nearest £5. The average annual income for the period 1st April to 30th June is £657.12.
Typically it should be no more than 4%. Here’s how:
The tariffs are designed to give a return of 5% to the customer, so the capital cost of the system would be roughly 20x the annual tariff. If the average tariff is £657, the average system price would be £13,140.
You should have a 1 in 3 chance of the order, as we refer each customer to 3 suppliers. If your margin is 20%, you’d expect to earn 1/3 x 20% x £13,140 or about £876 from each referral so the £35 fee is less than 4%.
The annual average income is calculated by looking at the tariff, the capacity and the number of installations in each FITs tariff band, as illustrated in the table below.
|Solar PV||≤4kW New-build||2,929||4.597||21.0 p||£821 k|
|Solar PV||≤4kW Retrofit||231,287||672.188||21.0 p||£119,986 k|
|Solar PV||>4kW – 10kW||4,243||32.764||16.8 p||£4,679 k|
|Solar PV||>10kW – 50kW||2,238||76.408||15.2 p||£9,872 k|
|Solar PV||>50kW – 100kW||5||0.327||12.9 p||£36 k|
|Solar PV||>10kW – 100kW #||432||13.894|
|Solar PV||>100kW – 150kW||2||0.299||12.9 p||£33 k|
|Solar PV||>150kW – 250kW||0||0.000||12.9 p||£0 k|
|Solar PV||>250kW – 5MW||2||0.767||8.9 p||£58 k|
|Solar PV||>100kW – 5MW #||103||73.585|
|Solar PV||≤5MW Standalone||459||5.938||8.9 p||£449 k|
|Solar PV||≤5MW Standalone #||205||110.771|
|Solar PV||≤5MW from RO||3,018||8.666||9.9 p||£729 k|
|Wind||≤1.5kW||18||0.024||35.8 p||£15 k|
|Wind||>1.5kW – 15kW||1,333||10.777||28.0 p||£5,335 k|
|Wind||>15kW – 100kW||260||7.280||25.4 p||£3,269 k|
|Wind||>100kW – 500kW||10||3.090||20.6 p||£1,125 k|
|Wind||>500kW – 1.5MW||17||15.000||10.4 p||£2,758 k|
|Wind||>1.5MW – 5MW||4||13.400||4.9 p||£1,161 k|
|Wind||≤5MW from RO||800||5.130||9.9 p||£898 k|
|Hydro||≤15kW||88||0.543||21.9 p||£311 k|
|Hydro||>15kW – 100kW||36||1.779||19.6 p||£912 k|
|Hydro||>100kW – 2MW||24||17.798||12.1 p||£5,636 k|
|Hydro||>2MW – 5MW||0||0.000||4.9 p||£0 k|
|Hydro||≤5MW from RO||132||1.813||9.9 p||£470 k|
|AD biogas||≤250kW||0||0.000||14.7 p||£0 k|
|AD biogas||>250kW – 500kW||0||0.000||13.6 p||£0 k|
|AD biogas||≤500kW #||8||3.155|
|AD biogas||>500kW – 5MW||8||10.541||9.9 p||£3,873 k|
|AD biogas||≤5MW from RO||0||0.000||9.9 p||£0 k|
|Micro-CHP||≤2kW||353||0.356||11.0 p||£57 k|
|Micro-CHP||≤5MW from RO||0||0.000||9.9 p||£0 k|
|Totals & average:||247,266||Average: £657.12||£162,483 k|
Tariffs, which have been discontinued (e.g. as part of the Fast-Track review) are shown with a # above and excluded from the calculations.