Feed-in tariff
The feed-in tariff (FIT) was introduced in April 2010 with the aim of increasing the number of renewable electricity installations.
What is the feed-in tariff?
Under the FIT, owners of renewable electricity generating technologies can receive payment for every unit of electricity that they generate and every unit of electricity exported back to the grid.
It allows residents, businesses and other organisations to not only make use of free electricity, but to also receive a payment for investing in renewable electricity generation.
Who pays for the tariff?
The FIT places an obligation on the six largest energy suppliers (and other smaller suppliers that choose to opt-in) to pay a tariff for every unit of electricity that is generated by a small scale renewable electricity generator.
How much money will I receive?
Owners of eligible technologies receive a set tariff for every unit of electricity that is generated. A unit of electricity is measure in kilo watt hours (kWh).
In addition, a separate tariff is paid for every unit of electricity that is exported back to the grid (i.e. excess electricity not used in the building). These are known as the generation and export tariff respectively.
The amount of money paid per kWh has been determined by government and varies for different technologies.
What technologies are eligible?
The following renewable technologies are eligible under the feed-in tariff scheme:
- Solar photovoltaics
- Hydro-electric
- Wind
- Combined heat and power (below 2kW)
- Anaerobic digestion
How do I apply for the tariff?
The process for applying to receive the FIT depends on the size of the system.
If the system is less than 50kW, you need to use the microgeneration certification scheme:
If the system is between 50kW and 5MW you need to use the ROO-FIT scheme:
Where can I find more information?
The Energy Saving Trust provides comprehensive and impartial advice on renewable energy technologies and the feed-in tariff.
Contact: Energy Saving Trust
Telephone: 0800 512 012
Website: www.energysavingtrust.org.uk
The Department of Energy and Climate Change has overall responsibility for the delivery of the feed-in tariff.