Feed In Tariffs

Why?

Feed In Tariffs (FiTs) were introduced by the Government in an effort to meet the legally binding target of renewables contributing a minimum of 15% of total energy by 2020. 

The FiTs policy, took effect in April 2010. The policy is designed to promote the widespread deployment of small scale, on-site, renewable energy generation systems. Roof-mounted solar PV systems are included within the available options, as are wind turbines and small scale hydro-electricity. Solar PV would appear to be the popular choice, mainly because few properties have access to a reliable supply of running water with a sufficient 'drop' and turbines are generally not suitable in built up areas as they need 'clean' air rather than the turbulence to be found around buildings in towns etc.

The FiTs are payments (or tariffs) which are made to the ‘Generator’ for the renewable electricity they generate using eligible, low carbon, technologies. The 'Generator' will be considered to be the owner of the panels, rather than the home owner or business benefitting from the electricity generated.

The tariffs provide 3 financial benefits:

• a payment for ALL electricity produced, whether used by the home owner or business, or exported to the grid
• an additional payment for electricity exported into the grid
• a reduction on standard electricity bills by use of the free energy produced.

The proposition.

If you have decided that the capital outlay required was simply too much for your budget to stand, then we ask that you consider carefully the following proposition of free solar PV panels.

Your roof or land space will in effect, be leased from you in order to install a roof-mounted solar power generating system. All of the costs will be covered for you, including the cost of the equipment, the installation and responsibility for operation and maintenance of the system will also be taken away from you. 

You will therefore benefit from the use of the electricity generated, lowering your energy bills substantially, at no initial outlay and incurring no ongoing operating costs.

The figures:

The feed-in tariff covers electricity generated by the following technologies, up to an installation size of 5 MWatts:

• Solar electricity (PV) (roof mounted or stand alone)
• Wind turbine (building mounted or free standing)
• Hydroelectricity
• Micro CHP (combined heat and power)
• Anaerobic digestion

For most qualifying solar PV arrays the FIT generation rate - as of March 2012 - is 15.2p/kWh (10 - 50 kW systems) or 12.9p/kWh (50 - 100 kW systems). In addition, there is an export premiom for electricity exported to the national grid, of 3.2p/kWh after adjustment for inflation.

To qualify for tariffs, you must install an MCS certificated product and the installer must also have accreditation.