Are you actually receiving your solar FIT payments?

by , Home Research Assistant Energy & Home 2 September 2012
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If you invest in solar panels you could make money back on the electricity you generate through the Feed-in Tariff scheme. Sounds appealing, but what happens if your energy company fails to make the payments?

solar panels and purple sky

The Feed-in Tariff scheme was introduced in 2010 to encourage the use of low-carbon energy. For solar panel owners, it means that you can claim payments for the energy you generate, whether you use it yourself or sell it back to the national grid.

Since it was brought in, the Feed-in Tariff scheme (FIT) has certainly caused its fair share of controversies. It’s funded by a levy on energy bills, meaning that those who don’t have solar panels end up paying money to those who do. But if you took the plunge and installed panels, how easy have you found it to get hold of the money owed?

If you’ve installed solar panels within the last two years or so, it’s likely that by now you’ll be claiming FIT payments from your energy supplier. But despite the contracts in place, we have received a number of letters, emails and phone calls from solar panel owners saying that payments have been irregular, late and in some cases not made at all.

Losing out on solar FIT payments

Your contract should tell you when you can expect to receive your FIT payments, but might lean on terms such as ‘best endeavours’ and get-out clauses. One member I spoke to said that their supplier owed them £1,000 for electricity generated for the grid, most of which had been declared in their meter readings almost six months beforehand!

This is all well and good for the energy companies’ cash flow, but not so great for our wallets. While practice such as this could be protected by the contractual terms, it seems unfair that consumers should have to lose out to this extent.

We want to investigate these late payments and find out how common they are. If you have solar panels, how long do you generally wait for your payments, compared to what your contract says?

34 comments

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John Tebbit

I’m with EDF and they generally pay about seven weeks after the reading is sent in.

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Saibal De

Well it’s been about 6 weeks since our solar installation by The Energy Conservation Group. The FIT paperwork took a while to get through Eon’s system, which I wanted to remain with even though I had recently switched to the Coop–courtesy Which’s Big Switch incidentally. Unfortunately a number of very basic errors put a dent in my confidence in the efficiency and attitude of TECG. For starters, they sent out the wrong generation meter ( I had requested a bluetooth remote-sensing one). By the time they around to changing it to the correct one over a week later, they seemingly ‘forgot’ to take the meter readings at changeover, which meant that I would have lost the FIT on all the leccy I had generated at the height of summer so far over 12 days. On initially questioning TECG, I was puzzled by their response of ‘oh the engineer didn’t take the meter readings and that’s that and there’s nothing I can do about it now’. I challenged this quite vigorously and eventually after much wrangling a piece of scrap paper was unearthed giving me what was allegedly the changeover reading–I have no way of verifying this but it was the best offer I would get so had to grab it. As the FIT application was made on the basis of the original meter installation, I was therefore offered a cheque by the solar people instead for £ 83 –this too turned out to be wrongly calculated–a further cheque for a few more quid rolled in apologetically a few days after this error too was pointed.

Another bit of alarming misinformation came when TECG (I should just call them solar!) told me that it was illegal to have a backwards rolling meter which the engineer noted at installation, and I needed to get the energy company to change it to a digital one. If this didn’t happen, I would be exporting all the solar power and not using any myself. On that basis they even declined to rebuild the housing for the existing meter that they had dismantled, claiming Eon would need to come and build a new one anyway when they converted their own meter. Interestingly Eon told me it was not necessary at all. When I pressed TECG on this, and asked them to confirm their contention in writing, they came back after a delay, very sheepishly contradicting their earlier claim, saying it would be good from the energy company’s point of view but didn’t disadvantage me, and there was no legal requirement to change the meter.

That wasn’t the end of the matter by any means. I started getting all the various certificates and technical documents soon after the installation, and pointed out to them that the extended warranty I had asked for appeared to be missing. This was the optional 25-year warranty covering the entire installation (the original guarantee was for 5 or 10 years, I forget which now), which I had been quoted at 1% +VAT of the total capital cost (which came to approximately 10.5k). TECG said it would take a while for everything to arrive, understandable as we were fast approaching the FIT deadline of 31 July (where the rate went down from 21p to 16p per unit generated). When a week or two later I still hadn’t heard anything, I was told that I hadn’t asked for it in the first place (which I know for a fact that I did but there isn’t anything documented), and that I would have to pay 2.5% + VAT instead! I showed them the literature I was given by the salesman which was barely a few weeks old, and more importantly was not out of date–having been produced within the last couple of months. TECG argued the unarguable–that they could not possibly sustain those prices as the finance companies who provided the warranty could not afford to either. No matter how many times I pointed out that this was the basis of the deal that I agreed to purchase in the first place, and moving the goalposts now was simply not on, they seemed impervious to my protestations and seemed quite peeved that I was being unreasonably argumentative when they couldn’t offer me the original price. Feeling quite strongly about what to me was a black-and-white case I would not let go, and eventually the Chief Executive of TECG came on board to offer me the original 1% +VAT, and said he would confirm within 7 days. Guess what? It’s been closer to 3 weeks and he still hasn’t made good on his commitment!

Having been impressed at the outset by the sales pitch that TECG look after their customers well since they may want to buy other products off them later on, I had no idea I would be in for such a shock. The occasional lapse and honest error I can overlook, but not a systematic catalogue of failures and certainly not this kind of unprofessional and contemptuous attitude towards proper customer service.

Naturally, I have no more faith in the Energy Conservation Group and if I had known then what I found out subsequently I wouldn’t have touched their solar panels with a barge-pole. But I am stuck for the next 25 years and am quite determined not to take any more of their nonsense. I have had to chase EON as well on several occasions about many little bits and pieces and so far have been assured I will be receiving my payment soon after my first meter reading on 12 October. Fingers crossed they won’t screw up on this one too.

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Nigel Chapman

Im with EON, they have paid out the last 3 payments about 7-8 weeks after the reading was given, this time they tell me it should be quicker because of their “new system” We will see.

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Paul

It took a while to speed up but now SSE are paying me within 3 weeks of giving them a reading.

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Max Wild

We have had PV panels since June last year. BG has now paid us 4 times – all within 4 weeks.

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kimpaynter31

Just over one year ago I bought a brand new Barratts house which already had solar panels fitted. Despite frequent chasing, it took about 5 months to get the necessary installation certificate from the house builder, to enable me to even apply to Eon for the FIT. I persuaded the builder to obtain the backlog of money I would have been owed for the FIT up to this point from their installer and pass it on to me. My application was confirmed in an email from Eon as having been received on 11/11/11. I then had to chase them a number of times by phone and letter re non receipt of my “acceptance pack” until, still not having received it in April 2012 (!) I made a complaint to the ombudsman. They upheld my complaint (which promptly ensured that I received the acceptance pack!) and ordered Eon to process my completed acceptance pack, allow me to make a meter reading and pay me the tariff. They also ordered them to pay me £25 for the shortfall in customer service, although actually I think it should have been more than this. I was finally permitted to provide a reading on 9/5/12 and received the payment for the period back to November 2011 into my account on 19/7/12 (10 weeks later). I phoned in the next reading on 24/8/12 and will now wait to see what happens …

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Heidi

I was with N Power who were terrible at paying the FIT’s. and their customer service left a lot to be desired. Up to 60 Days was in the contract for payment but last year it went over that period. I complained to executive complaints at N Power after a long battle and received the cheque the next day. They also messed up the Bank details to pay the money into for us. So now we have switched to Co-op Energy microgeneration scheme (because we did the Big Switch with to the C-op for our normal domestic electricity) and they seem much better – so far.

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Katharine

We have had PV panels for almost two years and claim our FIT payments from Scottish Power. There were some initial teething problems (they said they hadn’t received the reading on one occasion, although they had acknowledged it) but now we get the money within 2 to 3 weeks, credited directly to our bank account.

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JMartin

I had panels installed December 2011 with FIT payments made by British Gas. 1st 2 quarters I’ve phoned in and been dealt with politely and efficiently, receiving a cheque in the post within the stated 30days. This quarter had an email 2 weeks before the end requesting my reading and an online system to provide it. All very simple and easy

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Persemillion

npower are rubbish. They took a month to process the paperwork, claimed they received it after the deadline and asked for an energy rating certificate which I got and posted to them, which they then lost. They then tried to tell me I couldn’t claim for the first few weeks of the panels being installed as it was only valid from the date of the certificate. And then I’m supposed to have made a note of the reading on any particular given date. I told them that if they hadn’t have spent a month processing the paperwork, I would have had it done on time. We haggled and I eventually gave them a reading for around 10 days after the system was installed. Waiting for first payment as all the this hoo-ha meant we missed the first quarterly deadline to give a meter reading.
I felt npower were putting every obstacle they could in my path.

Hmm so some mixed experiences. So those of you who’ve had bad experiences (@Persemillion and Saibal De in particular) would you know where to turn if simply escalating the matter with your licensee didn’t work?
The Department of Energy and Climate Change have published a Dispute Resolution Process, which basically tells you to take it up with your licensee and if that fails go to the Energy Ombudsmen. But should it need to go that far?
Does anyone think the energy companies would be so lenient if their customers employed the same tardiness when paying electricity bills?!

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Saibal De

Thanks for that information, Amy, yes I was thinking of the next step in the process, and had actually had a preliminary chat with REA on the phone, who told me they would be happy to look at my dispute. I am getting increasingly disillusioned with TECG about even the Chief Executive’s continued attempts to fob me off, when I keep reminding him about his unfulfilled promises. When the head of an organisation is so customer-unfriendly and lacks the will to make good on his word, what can anyone expect about the company ethos itself?!

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Reg Richards

I am with Scottish Power. They asked for a picture of the FIT meter for the first reading then paid out within 3 weeks. All reading are done online so it is easy. No problems so far.

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m

SSE appear unwilling to make payments until you’ve chased them several times.
They have never paid me within their service level agreement.
Their phone number has now appeared engaged for the last week.
Can I levy a punitive interest rate (LIBOR+8%) on their late payments?

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Peter England

Im sure if you put it through the small claims court you would get a result, but is it worth the effort.
Put you request on paper, note if they don’t pay within 15 to 30 days then you will file a claim for interest plus costs. My guess is they will send a voucher or give you a credit off you next bill.
They don’t want the legal hassle!

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Jim Young

We had our 4Kwh PV System fitted 22nd May 2012 and we sent all the required paperwork off by recorded delivery within 14 days.

Then we had a further request for further paperwork and declarations in August 2012 and again these were returned within 7 working days by recorded delivery.

We emailed 21 days ago to ask when we might expect payment and they requested that we now complete more paperwork which was identical to paperwork we sent in August 2012.

They now tell us they are very busy and still we have had no communication or payment from them.

Interesteringly; if we fail to pay our EON electricity bill within 14 days; EON would be threatening us for payment with court action.

My conclusion: EON are using delaying tactics to avoid payment and frankly it is a con.

I intend to make a fuss if they continue to evade payments and we have told them that they are not getting anymore paperwork; because they have; via recorded delivery; received it.

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Kim Paynter

You will see my earlier post re problems with EON and the FIT payments. Despite the case having been logged with the ombudsman, my problems are still continuing. My payment for the reading on 24/8/12 had never been received, when I received an emailed request for another reading (to be supplied within 14 days). I phoned them and at first they could find no record of me at all. They phoned back and told me this was because I “hadn’t been migrated to the new system” but that they had now done this. When I queried the non-arrival of my money for the last reading they said that unless I submit the reading 7 days either side of the required date, I will not be paid until the next quarter! I said that no-one had given me dates for the readings, I had merely submitted it as soon as I received their previous email. The lady did apologise for all the inconvenience and gave me the 4 dates each year when readings are due. I don’t know if these are the same for everyone, but if they are this may help other people: 10th Nov, 10th Feb, 10th May, 10th Aug. I gave the 10th Nov reading on that day and was told that this payment and the previous one would both be in my account “in 5-7 days”. It is now 7 days later and (no surprise here!) there is no sign of it. I am inclined to agree with Jim Young the previous poster, that EON are employing delaying tactics to hang onto this money. I will go back to the ombudsman if my money does not arrive this week. I will also look into changing to another FIT provider that people are not having so much trouble with.

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Jim Young

I would also like to say that the company; SolarEssence; who fitted our PV system were second to none; excellent company; representative, communication, workmen; tidy, fast and very impressive; I was an employer in the building industry for many years and this firm; for us; was the very best and we would; without hesitation; use them again. In fact we are now considering another 4Kwh system for ourselves without payback an maybe also Solar Thermal; now soon to offer feedback payback. however; as for EON, not at all impressed.

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Peter England

Thermal after PV? Think again! Are you south facing and have loads of sun?
How big is you roof?

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Edward PJ

I have had a similar experience to that recorded by Kim Paynter above (17th Nov 2012) – with EON missing payments for the past 2 quarters. When I finally noticed and spoke to them about it the lady explained that they have payment windows of a week either side of – for me – 1st Dec, 1st Mar, 1st June, 1st Sept. My earlier readings had been submitted on the 24th of the prior months and so were – just – outside the ‘window’ and weren’t paid. My next reading is due in a few days time and they state they’ll be repaying the backlog in full ‘promptly’. Clearly anyone using EON for FIT payments needs to keep a close eye on this as it seems suspiciously like delaying tactics.

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J Wood

3.5kW system installed 1st March 2012, application forms sent to Eon that day.
After several chasing calls, and explanations of ‘heavy demand’, my FIT agreement finally arrived 30th July, with first meter reading requested 1 Sept.
Reading sent in on 1 Sept (and acknowledged by Eon), this prompted a request for a final receipted invoice for the installation, which I obtained and sent to them.
No FIT payment received as yet. Phoned today with 1 Dec reading. Eon said they had no trace of previous meter reading. Apologised and promised up to date payment within 5 days.

This certainly isn’t what I would expect from a smart on-the-ball organisation, and as you say the contrast with the approach they would take if I owed them over £1k going back 9 months is pretty stark!

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Julez s

Solar Panels fitted in July, sent paperwork to SSE but they took a couple of months to send contract, readings requested Nov. They then tried to change that to Dec 31st. After a ‘you having a laugh’ Email from me I have recieved a cheque but for only 1/2 what was expected. no explanation at all. will ring them Monday. Very dissapointed so far. as Elec bill doesn’t seem lower.

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Peter England

My advice to anyone seeking payment is to put there complaint in writing as well as sending by email. For the cost of a 2nd stamp it will get addressed and they will have to reply by letter.
It’s detail that matters, and dates of reading make a difference. I record my energy usage on a weekly basis and note weather for solar generation.

You will soon establish a pattern and find that you consumption has increased for a reason. Ie tumble dryer was on 6 times instead of 2, kids home from Uni, kids left hair tongues on. Cooked large Sunday roast, left emmersion on.

You can reduce your consumption by changing your habits, or automate your process.
An energyEgg will also help reduce wasted energy, just set of forget.

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Maurice Durbin

Yes, Eon have had problems making payments on time IN THE PAST; they appeared to be particularly hit by the rush of extra customers last December. However, they have improved their process and the new system seems to work well. We have received our last two payments within 10 days of submitting the readings. Credit where credit is due… Eon are now doing better than most it seems.

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Ken Lee

I submitted my solar generation reading to EON on 31st December, 2012 and received payment into my bank on 7 Jan 2013 – 4 working days!

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Pete

I submitted my solar generation to NPOWER on 1st December, 20122 and receive payment in my account on 11th Dec 2012 – 11 working days! Not a bad reponse.. Not as good as 4 working days though!

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J Titterton

Panalsinstalled end of May 2012. Not a penny received yet. British Gas keep quoting ‘there is /has been a problem with your meter’ WHAT problem..they’ve never seen it! Production is much lower that expected anyway. I feel I have been conned.

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Jim

Reading the many comments on PV and FIT and customers having problems getting paid, well, here is what to do: We had panels fitted in May 2012 and still by January 2013 after excuse and more excuses and lost forms and renewed forms; just avoiding payment from EON, I had had enough; that was it, no more messing about; go for the head of the snake; So I emailed EON Headquarters Germany; the owners of EON and told them in no uncertain terms that they have an 82 percent rate of British customer disfaction; the lowest in the UK and if I failed to pay their bills they would take action against me but if they owed me money; FIT, I did not have that power. So, I told them that I wanted my money in my bank not theirs and pay up. Within one week EON UK replied, I have been paid, so someone must have made someone else Jump. So if you have not been paid, go for the top, don’t mess about with the soldiers and speak your mind;; be frank and tell the Germans to pull their fingers out and pay you.

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Jonathan

I get FIT payments from British Gas and have had no issues in receiving payments.

Would appreciate if someone can tell me if I switch my supplier of Gas and Electricity from British Gas, does that also mean I switch who I receive FIT from?

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Michael Bell

We are with Scottish Power both as our energy supplier and also on the FIT scheme. We installed 25 sq m of PV back in Dec 2011 (before the deadline) and despite receiving all the confirmation paperwork, they have not sent a penny (we’re owed about £1500).

We have tried writing (no reply) and calling (“due to the high volume of calls…..”)

What should we do?

Michael and Linda Bell

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Pete

Write again, register your letter and state if the matter is not settled within 15 days then you will take the matter to small claims court.

It will cost you £35 if they don’t respond but you will get your money if your paper work is in order.

Pete

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Heidi morse

Co-op energy have been very efficient since I moved to them last year. Much better than npower.
Payments always made on time and friendly staff.

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Richard H

I had my PV system installed 12 months ago by Go Green Systems, who gave good advice and fitted the array on the dates specified., I too submitted my FIT paperwork to British Gas, who confirmed receipt and acceptance a few days later. My meter readings have been submitted each quarter in response to e-mail requests from BG and payments received within 10 working days which is much quicker that their stated policy. Despite the poor years weather my system has exceeded its estimated performance which shows that getting the right advice and system is important.

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Mark

Our panels were installed on 6th April this year and paperwork hand delivered to E- On offices in Bedford on the 8th. They finally acknowledged my application was received on the 10th April 3 weeks later when I was complaining about another matter and asked for confirmation of receipt. They then proceeded to tell me the paperwork wasn’t complete, even though everything asked for was supplied. They required copies of credit agreements as we financed our installation, something which I feel is none of their business, given that the installer provided the certificate of ownership.

Last communication from them was on 24th April saying my application would be processed “in due course”. How long is due course?

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