UK Non-Commodity Charge · Auto-generated
Feed-in Tariff Levy
Current rates, who sets them, and where they are forecast to go.
What Feed-in Tariff Levyis, who sets the rate, what the revenue funds, and where it's heading. Sourced daily from the Purely Energy non-commodity cost data hub.
Roughly 1 to 2% of a typical UK business electricity bill
Feed-in Tariff Levy: what it is, who charges it, and what it pays for
What it is
The Feed-in Tariff Levy charge in plain English
Support scheme for small-scale renewable generation (rooftop solar, small wind). Scheme closed to new applicants in 2019 but existing 20-year contracts continue.
Introduced 2010 (Energy Act 2008). Closed April 2019. Declining to zero by ~2039.
Who charges it
The body that sets the rate
Ofgem (annual levelisation in March)
Unit
p/kWh
Applies to
UK business electricity
What it pays for
Where the revenue ends up
Small-scale solar panels, wind turbines, hydro (under 5MW)
Share of typical bill
1 to 2%
Ofgem's FiT levelisation publishes a quarterly per-kWh levy that contributes 1 to 2% of a non-domestic electricity bill while the legacy scheme runs off.
Published rate history
| Financial year | Rate | YoY change | Source |
|---|---|---|---|
| FY2020 | 0.4840p/kWh | - | published |
| FY2021 | 0.6010p/kWh | +24.2% | published |
| FY2022 | 0.5630p/kWh | -6.3% | published |
| FY2023 | 0.6070p/kWh | +7.8% | published |
| FY2024 | 0.6100p/kWh | +0.5% | published |
| FY2025 | 0.8590p/kWh | +40.8% | published |
Forecast trajectory
AI-assisted forecasts from our deep-research pipeline. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2025-26 | 0.1200 | 0.1350 | 0.1500 | high | Based on known contract expiries and established regulatory framework |
| 2026-27 | 0.8100 | 0.9000 | 0.9900 | high | Peak year with largest cohort of installations still active |
| 2026 | - | 0.8800 | - | - | |
| 2027-28 | 0.7800 | 0.8700 | 0.9600 | high | First material reduction as initial wave expirations begin |
| 2027 | - | 0.8700 | - | - | |
| 2028-29 | 0.6800 | 0.7600 | 0.8400 | med | Accelerated decline as early high-tariff contracts expire |
| 2028 | - | 0.8400 | - | - | |
| 2029-30 | 0.5800 | 0.6400 | 0.7000 | med | Step-change as 2009-10 highest tariff installations expire |
| 2029 | - | 0.7800 | - | - | |
| 2030-31 | 0.4600 | 0.5100 | 0.5600 | med | Bulk of 2010-11 installations exit scheme |
| 2030 | - | 0.7000 | - | - | |
| 2031-32 | 0.3500 | 0.3900 | 0.4300 | low | Uncertain due to potential regulatory and market changes |
| 2031 | - | 0.0632 | - | - | |
| 2032-33 | 0.2500 | 0.2800 | 0.3100 | low | Only 2012-13 onwards installations remain active |
| 2032 | - | 0.0645 | - | - | |
| 2033-34 | 0.1500 | 0.1700 | 0.1900 | low | Smaller installation volumes from reduced tariff period |
| 2033 | - | 0.0658 | - | - | |
| 2034-35 | 0.0300 | 0.0950 | 0.1500 | low | Highly uncertain, wide range due to asset degradation uncertainty |
| 2034 | - | 0.0671 | - | - |
Feed-in Tariff Levy FAQs
What is the Feed-in Tariff Levy charge?
Support scheme for small-scale renewable generation (rooftop solar, small wind). Scheme closed to new applicants in 2019 but existing 20-year contracts continue.
Who sets the Feed-in Tariff Levy rate?
The Feed-in Tariff Levy rate is set by Ofgem (annual levelisation in March).
What does Feed-in Tariff Levy pay for?
Feed-in Tariff Levy revenue supports Small-scale solar panels, wind turbines, hydro (under 5MW).
What is the current Feed-in Tariff Levy rate?
For financial year 2025, the published Feed-in Tariff Levy rate is 0.8590 p/kWh.
What is the Feed-in Tariff Levy forecast?
Our latest forecast for 2026-27 is 0.9000 p/kWh (high confidence). Peak year with largest cohort of installations still active
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Rate data sourced from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above. Forecasts are AI-generated from published guidance and market trends; treat P50 as a central estimate and reference P10/P90 for sensitivity.