Installer referral fees

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.

Referral fee calculation

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.

How much of my margin is that?

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%.

Average annual income

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.

Calculating average annual income

Tariffs, which have been discontinued (e.g. as part of the Fast-Track review) are shown with a # above and excluded from the calculations.