Feed-in Tariff

Feed-in Tariff

Would you like to earn money for generating your own renewable electricity? If you own a property with solar panels, wind turbines or another eligible system, you may be able to earn a tariff for generating and exporting clean energy.

The Feed-in Tariff allows you to earn money for the energy you generate and export using renewable technology. Thanks to the Feed-in Tariff, switching to a renewable source of energy has never been a more affordable process.

Read on to learn more about the Feed-in Tariff scheme, the eligible technology and the potential changes to the scheme in the future.

Note: The government is considering changes to the Feed-in Tariff scheme that may reduce the rates paid to individuals and businesses that generate renewable energy.

The latest consultation regarding the Feed-in Tariff scheme took place on August 27, 2015. You can read the documents from the consultation on Gov.uk.

What is the Feed-in Tariff scheme?

The Feed-in Tariff scheme allows owners of renewable energy technology to earn a tariff for generating their own electricity.

The aim of the scheme is to incentivise the sale, installation and use of clean energy technology such as solar panels and wind turbines. Both individuals and businesses can earn money by generating clean, renewable electricity.

Feed-in Tariffs are also referred to as “FITs”. The tariffs are available for most types of renewable energy equipment, including common systems such as solar panels or wind turbines, and less commonly used systems such as residential hydropower.

Because the Feed-in Tariff scheme allows owners of renewable energy technology to earn a tariff for generating and exporting electricity, it significantly reduces the cost of switching to renewable sources of energy.

How does the Feed-in Tariff work?

There are two primary tariffs under the scheme. The first is the generation tariff – a tariff paid to people and entities that generate renewable energy using systems such as solar photovoltaic panels or wind turbines.

The second tariff is the export tariff. This is a tariff for excess renewable energy that is exported back onto the national grid. Exporters are paid based on the quantity (in kilowatt-hours) of excess electricity that they deliver back onto the national grid.

Tariff payments are made by energy suppliers, who are licensed under the scheme as FITs Licensees.

Because the amount that renewable energy system owners can earn is based on the quantity of electricity generated and exported, energy efficiency practices can have a significant impact on the total earnings possible under the scheme.

Typically, homes and commercial properties that generate either a significant level of electricity from renewables or all of their electricity from renewables receive the greatest amount under the Feed-in Tariff.

Who is eligible to receive a Feed-in Tariff?

The Feed-in Tariff scheme is open to individuals, businesses and organizations. The goal of the scheme is to increase the UK’s percentage of electricity generated using renewables, with a goal of 20% renewable energy by the year 2020.

There are specific eligibility criteria for people and businesses interested in joining the Feed-in Tariff scheme.

In order to qualify for a Feed-in Tariff, a system’s total electrical generating capacity must be under five megawatts. This limit is significantly greater than the amount of electricity generated by most household and small commercial energy systems.

Eligible technologies include hydropower, solar photovoltaic panels, wind power and micro-CHP systems. The Feed-in Tariff scheme does not cover tidal and wave energy systems.

The technology used to generate electricity must also be certified to qualify for the scheme. Small installations with a total capacity of 50 kilowatts or less must qualify under the Microgeneration Certification Scheme.

What are the Feed-in Tariff levels?

There are different tariff levels for photovoltaic (solar) and non-photovoltaic energy technology. The tariff levels also differ between generated and exported energy. You can view the current Feed-in Tariff tables on the Ofgem website.

Learn more about green energy

Would you like to learn more about the Feed-in Tariff scheme. You can learn more about eligibility for the Feed-in Tariff scheme, current tariff rates and the process of registering for the tariff at the Energy Saving Trust website.

Are you interested in green energy? We specialise in green energy systems for home and commercial properties and can provide the advice and information you need to start generating your own renewable energy.

From solar to wind power, our team of renewable energy experts can help you find the ideal solution for your home. Contact us now to learn more about how much you can save by switching to renewable energy for your home or business.

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