Feed in Tariff (FiT)
Dates:
Began in April 2010
How long does it run:
20 years
Who funds the payments:
The electricity supplier for the building will provide payments for each kWh generated from qualifying source
Further details:
If you install an electricity-generating technology from a renewable or low-carbon source such as solar PV or wind turbine, the government's Feed-In Tariff scheme (FIT) could mean you get money from your energy supplier.
You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And of course you'll also save money on your electricity bill, because you'll be using your own electricity.
About the scheme
Most domestic technologies (and larger systems up to 5 megawatts) qualify for the scheme, including:
- solar electricity (PV) (roof mounted or stand alone)
- wind turbines (building mounted or free standing)
- hydroelectricity
- anaerobic digesters
- micro combined heat and power (CHP).
It is energy suppliers that will pay you the FITs payments with the 'big six' energy suppliers required by law to provide these payments. Some smaller electricity suppliers may not offer FITs payments as it is not compulsory for them though many have opted to offer the payments. The tariffs available and the process for getting them depend on when the technology was installed, and whether the system and the installer were certificated under the Microgeneration Certification scheme.
How the FiT works:
If you are eligible to receive FITs you will benefit in three ways:
- Generation tariff - your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (typically 20 years) and are index-linked . For a full list of generation tariffs.
- Export tariff - you will get a further 4.5p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate.
- Energy bill savings - you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.