Npower FIT form - Opt In query

[Psycloud]

Hi All

I am filling out my nPower FIT application form and one of the questions is:

Would you like to Opt In to the guaranteed Export price of 3p a unit (Yes/No)

I'm not sure I undserstand the question.  If I say No will I not recieve anything for exporting or will I recieve some other rate (a fluctuating rate for example).  If I say YES does that mean I will be exempt from any rate increases or is the question merely asking if I want to export?

Thanks

David

[Ted]

You can 'opt in' to the guaranteed 3p rate or 'opt out' and take any market rate you can get offered - which could be more or less than 3p. You can switch from one to the other once a year.

The guaranteed 3p rate is index linked to annual RPI change in the same way as the main FiTs rate.

[Justme]

Has anyone done or checked out the opt out yet?

If so what rate were you given / offered.
(not that it applies to em as we are off grid)

[tonybrett]

You can 'opt in' to the guaranteed 3p rate or 'opt out' and take any market rate you can get offered - which could be more or less than 3p. You can switch from one to the other once a year.

The guaranteed 3p rate is index linked to annual RPI change in the same way as the main FiTs rate.

I'd be interested to hear what views folks have on the likely rate people will get paid if they opt out.  My gut feeling is that as energy prices increase it is likely to be better rather than worse than the opt-in index-linked 3p but other views would be welcome.  We're on supply with Southern Electric and they will fortunately swap our meter for an import-export meter for free :-)  Their opt-out rate is currently 3p also.

I'm about to register a 3.33kWp system and even in the first week of its operation it's becoming very clear to me that we'll export a very large percentage of what we generate in the week as we're both out at work all day.  Of course the 41.3p generation payments are the bulk of the economic viability so opt-in vs. opt-out is not a huge deal but I'd still be interested in people's views.

Thanks,

Tony

[Justme]

I dont see a great incentive for the utilities to pay any more than the opt in rate.

What are you going to do? Refuse to supply them?

[tonybrett]

this is a fair point.  But it can't be that simple, surely?

If the opt-out price really is "open market" the surely the supplier has to pay a fair market rate?  If the cost of electricity from power stations is more than 3p then won't it be more economical for the supplier to buy from micro-generators rather than the power station operators?

Tony

[billt]

In the electricity supply world small scale PV is so small that it's invisible.

It could well be the case that the administrative costs in dealing with micro generators are greater than the value of the power that they provide. Hence I can't see anyone bothering to create a market in small scale generation.

TBH the FITS are so large that I'm surprised that they had an export tariff as well.

[whitehedge]

This may have changed since the beginning of the year, but I've just been informed by an NPower FITS team member that currently it's the opt-in rate, or nothing. Despite the impression given on the application form, which talks about the opt-in rate and the market rate, the t&cs as currently posted on their website do bear out what the FITS team member told me:

"You may opt out to receive payments for any electricity that you have exported back on to the local electricity network.  If
you wish to opt out, please let us know in writing. Your opt out notification will not become effective until the next
payment period (provided that the period between opting out and the next payment period is more than 28 days).  You
can opt back in to receive payments for electricity that you have exported back on to the local electricity network at the
market based price once every 12 months from the date you opted out."

Though I can't see the point of having such an opt-out, since there seems no reason for anybody to take it!

[Ted]

The only reason for the opt-out clause was as a smoke-screen to address the criticism of the ridiculously low FiT export rate when it was first mooted - of 5p - in the FiTs consultation.  In practice, of course, the DECC specified figure was always going to affect the market rate as well.

[noah]

good energy are offering5.3p for opt out (for hydro ) - must be on export meter, no deemed estimates

[ecogeorge]

good energy are offering5.3p for opt out (for hydro ) - must be on export meter, no deemed estimates

Where do you find this out from?