Feed-in Tariff
Introduced in April 2010 the Feed in Tariff is a Government backed initiative which was created to encourage the generation and use of energy from renewable sources.
You can receive feed-in tariffs for both the generation of electricity (a generation tariff) even if you use some or all of the electricity yourself and for giving unused generated electricity back to the National Grid (an export tariff). The level of payment depends on the technology and whether it is being fitted to an existing home, or installed as part of a new build. In the UK, future payments are guaranteed for the next 25 years for solar and 20 years for wind turbine-generated power and are linked to inflation.
Scheme Eligibility
To be eligible for the FiT, it is important to note that both the product and the installer that carries out the work must both be accredited by the Microgeneration Certification Scheme (MCS). MCS Accreditation has been introduced by the government to evaluate the quality of the products and of the installers and thus protect the consumer.
The level of payments that you could be eligible for degrade over the 25 year period of the FiT – however it is worth noting that the tariff payable at the time of your installation is the one that you are fixed to for the term of the scheme so it really pays to get involved as soon as you can.
When a system is installed the utility provider will need to be notified so that the FIT can be paid.
The Benefits of generating your own electricity are:
- A payment for all the electricity you produce, even if you use it yourself
- Additional bonus payments for electricity you export into the grid
- A reduction on your standard electricity bill, from using energy you produce yourself
- Added value to your property