Feed-In Tariff

If you generate electricity in your home you can get paid for it through the government backed Feed-In Tariff! And you don’t have to pay to use the electricity that you generate.

There are a number of qualifying electricity generating technologies. The most commonly known are Solar Electricity (PV), (solar panel systems) and micro Wind Power (domestic wind turbines) .

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The basics

Currently you can install an electricity generating technology in your home, such as solar panels or a domestic wind turbine, and use it to generate your own electricity free of charge, saving you money on your energy bills.

Under the Feed-In Tariff scheme, your energy supplier pays you for each unit of electricity generated as well as any electricity you do not use and export to the Grid. This helps to reduce the payback time of your installation, and can even make you money after the installation has paid for itself. Being guaranteed by the government means it is very secure, and the payments are linked to inflation so that you will continue to receive a strong return on your investment for the period of the scheme – up to 20 years in some cases.

Very soon you will also be able to receive payments for generating heat too. Certain low carbon technologies will qualify for payments for the heat that they generate through the Renewable Heat Incentive.

There is almost certainly a technology that is suitable for your home that will qualify for the Feed-in-Tariff. This will depend on your home but with a little information it is possible to see which energy generating solutions would be best for you.

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The Technologies that can qualify for the Feed-in-Tariff are:

 

FAQs

Will I need a special meter to be able to claim FIT payments?
Generation must be metered and Feed-In Tariff payments are made to generators on the basis of metered generation. This means that you will need a generation meter, as your meter will need to be able to measure your electricity generation. DECC has announced that for now, the amount of exported electricity used in the calculation of payment of export tariffs can be deemed (estimated), subject to the following:
  • These arrangements will only apply until the finalising of specifications for smart meters;
  • These arrangements do not apply if export meters exist already, or are provided at the generator's expense
Why are they called 'Feed-In' Tariffs?
This sort of tariff was first introduced in Germany in the 1990s and it applied only to power which was 'fed in' to the electricity grid, hence the name. The tariffs in the UK apply to all the electricity the system produces, whether it is used on site or fed back in to the grid, so the name is actually a misnomer (they are really 'production tariffs').
What's the Export Tariff?
You earn an additional fixed income for every kilowatt hour of electricity you generate and sell back to the grid.
I have already received a grant; will I still be eligible for feed-in tariffs?
Feed-in tariffs are open to all householders regardless of whether they have received a grant or not. The only consideration is whether or not you are already registered for ROCs. If this is the case, you will receive a different tariff rate as explained above.
I have already installed a system; will I still be able to receive FITs?
Feed-in tariffs are open to all renewable generators <5MWe. Different tariff rates apply depending on type of technology and whether the system has already been registered for government support:
  • Systems installed between 15th July 2009 and 01st April 2010 will be eligible to receive FITs. All customers installing during this period must be registered under Renewable Obligation. As a registered generator customers will be able to receive Renewable Obligation Certificates (ROC) payments for any electricity generated during his period. Come 1st April 2010 customers registered during the interim period will be automatically transferred over to the feed-in tariff and the FIT applied for generation from this point forward. Please note that customers registered for ROCs during the interim period will receive a 6 month reduction in the lifetime support of the FITs.
  • Systems installed after April 2010 Customer's installations will be registered by an accredited body in order to qualify for feed-in tariffs. Customers must then approach their supplier to begin receiving FIT payments as per the table above.
  • Systems installed before 15th July 2009 Systems installed and registered for ROCs before 15th July 2009 (date of consultation launch) will still be able to receive FITs however they will receive a lower FIT rate at 9p/kWh, regardless of technology.
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