Feed-in Tariff's

Feed-in Tariffs (FiTs) have dominated headlines and stirred no end of debate, but what's the fuss all about, what are the actual rates, and how does the scheme work?

What is the Feed-in Tariff scheme?

The Feed-in Tariff scheme - also known as FiTs or the Clean Energy Cashback scheme - means that people who generate their own green or renewable energy will be paid for doing so.

To qualify for the Feed-in Tariff figures quoted below, your house needs an Energy Performance Certificate rating of D or higher.

If you have a lower EPC rating, or your system produces more than 4Kw, you'll be on a slightly different rate - visit the DECC website for more information.

Below is the table of Feed-in Tariffs for households that meet the criteria:

Feed-in Tariff per kWh

Date systems must be live by

15.44p

Before 31st January 2013

 

Feed-in Tariffs are already popular across Europe - in the Netherlands, for example, 40% of its electricity is generated through similar schemes. Currently, the UK only gets about 9.4%* of its electricity from renewable sources and the Feed-in Tariff scheme could help to increase this percentage.

How does the Feed-in Tariff work?

Feed-in tariff

 

 

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How the Feed-in Tariff works

  1. You install solar panels or a wind turbine and start generating your own renewable energy.

  2. You use the 'free' electricity you generate in your home, get paid for every unit you generate and buy any extra energy you need from your energy supplier.

  3. You sell any extra electricity you're producing to the National Grid.

The amount you get paid for the electricity you generate will depend on what energy source you're using.

Tariffs are index-linked, which means they will track market prices and, depending on the type of technology you use to generate electricity, they're guaranteed for up to 20 years.

 

Is it possible to make money from the Feed-in Tariff scheme?

Yes. As well as cutting your electricity bills, you can earn a significant amount of money from the energy you generate. For example:

  • A 3kW system with 12 solar panels will generate 2575kWhs of electricity per year. A household can use up to 50% of the electricity the panels generate, making a saving of £185.

  • By signing up to the Feed-in Tariff, you will earn 15.44p for every unit of electricity generated (up to £397), plus £0.045 for every unit sold back to the Grid (£57) meaning total Feed-in tariff earnings of up to £455.

  • Over the 20 year lifetime of the Feed-in Tariff rate you'll generate an income of up to £12,819*.

What sources of renewable energy generation does the Feed-in Tariff scheme cover?

  • Wind power

  • Solar or photo voltaic power

  • Hydro Anaerobic digestion - plant and animal material is broken down by bacteria, which produces methane that can then be used to generate energy.

  • Domestic Micro Combined Heat and Power (CHP) - this produces both heat and electricity from one process, and it's a more efficient way of using both fossil and renewable fuels.

If you've already got a solar panel/wind turbine, can you be part of the scheme?

Yes. The Feed-in Tariff scheme doesn't just apply to new installations. If you've installed a way of harvesting one of the kinds of renewable energy listed above since July 2009, you can join the scheme.

If you started generating your own electricity before July 2009, you can also be part of the scheme but at a lower tariff rate.

What about renewable heat generation - is that covered?

The generation of renewable heat through things like ground source heat pumps, biomass boilers and air source heat pumps is not covered by the Feed-in Tariff scheme.

However, the DECC (Department of Energy and Climate Change) has announced that from April 2011, there will be incentives for renewable heat generation.

 

We are also installing FIT's and RHI to households, so if you need more information or would like to book a one of our energy assessors please call us on 01332 349544 or 0844 344 0190

 

 

 

 

Do I qualify?

As long as you own your own home or you are a tenant living in privately rented accommodation (and you have your landlord's permission) you might be eligible for a 100% boiler grant to replace your old boiler.

What if I don't qualify?

If you aren't eligible for a 100% boiler grant there is an alternative solution and it's called the Green Deal Finance scheme.

Think of it as a loan against your home which you use to carry out approved and recommended home improvements...