What are Feed-In Tariffs?

Feed-In Tariffs (also known as FITs) are payments to energy users for the renewable electricity they generate and are part of what some know as Clean Energy Cashback, a scheme for paying people for generating “green electricity”.

The tariffs have been introduced by the Government as a way of encouraging energy users to help increase the level of renewable energy generated in this country. The UK has a target of generating 15% of its total energy from renewable sources by the year 2020.

 

The Solar PV triple benefit!...

Firstly, an electricity meter measures all the electricity that is generated by the system. You can claim your feed-in tariff payments for EVERYTHING that is generated, currently at least 21 pence per unit (kWh) generated - see above.

 

Secondly, the electricity you generate is available for use within your home and this doesn't affect the feed-in tariff payments! Yes that's right, you still get paid for the electricity you generate, even if it is used by you in your own home!

 

Thirdly, if your solar PV system is generating more electricity than your home is consuming, the excess can be exported and sold back to the national grid generating further income. Currently the export rate is 3 pence per unit (kWh). This is again, on top of the feed-in tariff payment, so effectively you would be getting paid twice for any electricity exported !

 

Almost everyone can benefit from FITs, from the domestic consumer to the private landlord, from farms and other businesses to schools and colleges.

 

The latest advice from the Energy Savings Trust for householders having a Solar PV system of less than 4kWp installed is as follows:

• Regardless of what some installers may say there is no guarantee that householders will get the higher (43.3p/kWh) rate for installations with an eligibility date between 12th December 2011 and 3rd March 2012. Customers who install on the assumption of the higher rate do so at their own risk.
• The actual tariff applied to installations with an eligibility date between 12th December 2011 and 3rd March 2012 won’t be confirmed until the legal process has been completed. The Government has 28 days from the judgment to lodge an appeal with the Supreme Court.
• Householders should plan on the basis that at the very least they will get 21p/kWh.
• Householders with an eligibility date after 3rd March 2012 will receive 21p/kWh.
• Householders with an eligibility date after 1st April 2012 will receive 21p/kWh provided that their home has an Energy Performance Certificate (EPC) Band D or better (A being the best). Homes which do not have an EPC Band D or better will get will get a reduced generation tariff rate of 9p/kWh.
• For householders with an eligibility date after 1st July 2012 it is proposed that the rate should between 16.5p/kWh – 13.6p/kWh. The exact rate will depend upon the amount of solar PV installed between March and April 2012.