The Feed-in Tariffs (Amendment) Order 2023 came into force on 1 April 2023, removing the availability of green import exemptions for the Feed-in Tariffs scheme1. The change applies for FIT Scheme Year 14 and each subsequent FIT year1. The government had consulted on the removal of these scheme cost exemptions for green imported electricity in March 2022, and committed to remove them, amending the FIT legislation1. The Department for Energy Security and Net Zero (DESNZ) assumed responsibility for the FIT scheme as of February 2023, taking over from BEIS1.
The change was reflected in an update to the Feed-in Tariffs: Guidance for renewable installations, published by Ofgem on 3 April 20231. Ofgem administers the scheme on behalf of DESNZ and maintains the Central FIT Register1.
The FIT scheme was introduced on 1 April 2010 by the Department for Energy and Climate Change (DECC) and closed to new applications from 1 April 20191. All pathways for accreditation are now closed1. The scheme supported solar photovoltaic, wind, hydro, anaerobic digestion and fossil fuel-derived combined heat and power (micro-CHP) installations, with capacity up to 5MW, or 2kW for micro-CHP1.
Ofgem's annual report for Scheme Year 13, covering 1 April 2022 to 31 March 2023, records 870,063 active accreditations, with 245 new installations registered during the year1. Solar photovoltaic installations made up 98.92% (860,688) of accreditations and 79.42% (5.15 GW) of installed capacity, while domestic installations accounted for 95.38% of accreditations and 45.57% of capacity1. The South West had the greatest number of installations (123,307) and the highest proportion of installed capacity (17.90%)1. Over 6.48 GW of low-carbon generating capacity has been deployed under the scheme since its start1.
| Scheme Year 13 figure | Value |
|---|---|
| Active accreditations | 870,063 |
| New installations registered | 245 |
| Solar PV share of accreditations | 98.92% (860,688) |
| Domestic share of accreditations | 95.38% |
| Total scheme value | £1.73 billion |
| Increase in scheme value on SY12 | £157.7 million |
In SY13 the total value of the scheme increased by £157.7 million to £1.73 billion1. Net export payments were negative for the second time since the FIT launched1. Ofgem closed 28 investigations in SY13, three of which resulted in compliance action; in one investigation sufficient evidence was found to demonstrate fraud, and Ofgem instructed the affected FIT Licensees to recoup any payments made and withdrew the installation's accreditation1. Three suppliers exited the market during SY13, a reduction attributed to increasing market stability, and no levelisation payments were left unpaid, so mutualisation was not triggered1. In November 2022 Ofgem issued a Provisional Order to Delta Gas and Power Ltd1. During SY13, 83 micro-CHP installations with a combined capacity of 89.1 kW became inactive and will no longer be eligible for FIT payments1.
"The Feed-in Tariffs (Amendment) Order 2023 came into force on 1 April 2023"
Why it matters for households
The green import exemptions allowed certain electricity suppliers to avoid some of the costs of the FIT scheme where they could show their electricity was sourced from renewable generation. Removing them means those costs are no longer exempt, and the change applies from FIT Scheme Year 14 onwards1. For households, the practical effect sits with how scheme costs are shared among licensed suppliers rather than with the payments made to accredited generators, which continue under the existing rules for installations still within their eligibility period1.
The FIT scheme itself has been closed to new applicants since 1 April 2019, and all accreditation pathways are now closed, so the amendment does not open a route to new FIT payments1. Households considering small-scale generation now sit outside the FIT scheme; the Smart Export Guarantee launched on 1 January 20201. Ofgem's decision in December 2021 to allow replacement generating equipment is also noted in the report1. The report does not set out how the removal of the exemptions affects individual household bills, and no estimate of that effect has been reported1.
What happens next
The Order applies for FIT Scheme Year 14 and each subsequent FIT year1. Ofgem states it will continue to monitor supplier and generator performance under the scheme1. No further dated steps are set out in the report1.
Sources1 cited
- Feed-in Tariffs Annual Report Scheme Year 13.pdf, ofgem.gov.uk