Make money for using green energy technology. The UK Government's Feed-in Tariffs scheme (FIT) could mean that you are entitled to money from your energy supplier. If you install an electricity-generating technology with a renewable or low-carbon source, such as solar PV or wind turbine, you should find out about FITs.
What Are Feed-In Tariffs (FITs)?
Simply put, you can be paid for electricity generated by your source - even if you use it yourself - and for any surplus electricity that you export to the grid. You'll also save money on your electricity bill, because you'll be using your own electricity.
The Department for Energy and Climate Change (DECC) makes key decisions on FITs in terms of UK government policy. Ofgem, the energy regulator, administers the scheme.
Your energy supplier will make FIT payments to you. The major energy suppliers are required by law to provide them. Smaller suppliers are not obliged to, but many have opted to offer them anyway.
How Do I Qualify for FITs?
The installer and the energy products you use must both be certified under the Microgeneration Certification Scheme (MCS). Hydro and anaerobic digestion systems have to go through the ROO-FIT process. The tariffs you receive depend on the eligibility date. Your property’s energy performance certificate (EPC) rating is also a factor for solar PV.
Benefits of FITs
If you are eligible to receive Feed-In Tariffs, you will benefit in three ways:
- Generation tariff: your energy supplier will pay a set rate for each unit (or kWh) of electricity that you generate. When your system has been registered, the tariff levels are index-linked and guaranteed for the period of the tariff, which can be up to 20 years.
- Export tariff: you will receive a further 4.77p/kWh from your energy supplier for every unit that you export back to the electricity grid, so you can sell any generated electricity that you don't use yourself. This rate remains the same for all technologies. Smart meters will eventually be installed to measure what you export, but until that time your contribution is estimated as being 50 per cent of the electricity you generate. Only systems above 30kWp have to get an export meter fitted, and a household system is unlikely to be large enough.
- Energy bill savings: you will make savings on your electricity bills because generating your own electricity supply means you don’t have to buy as much electricity from your energy supplier. Your savings will vary depending on how much of the electricity your property consumes.
Contact Devine Energy for more information on Feed-In Tariffs and your eligibility.