Project Summary: How government funded Feed-In Tariffs (FITs) can pay you for generating your own electricity at home.
Feed-In Tariffs are payments you can receive from your energy supplier in return for generating your own electricity at home using a renewable or low carbon electricity generating technology, such as solar PV or hydroelectricity. This means that on top of the money you save by generating your own free electricity, you are actually making money from the technology you have installed, which reduces the time it takes for your renewable technology to pay for itself. You can get paid for all the electricity you generate, including what you use and the any electricity you don’t use which can be exported to the national grid for another customer to use.
Feed-In Tariffs replaced previous government grants for domestic electricity generating technology in 2010.
FIT in 5 steps
In periods where you need more electricity than you are generating, you can import it from the grid as usual, which you pay for. However, your electricity bills will still be reduced as you are generating at least part of the electricity you are using free of charge.
As with the Renewable Heat Incentive subsidies, the scheme is administered by Ofgem, the U.K’s energy regulator. Large energy companies are legally obliged to be FIT suppliers; if your energy company is smaller it’s a good idea to check if they provide this service.
In the case of hydroelectricity and anaerobic digestion projects or projects with a capacity greater than 50kW you will need to apply for ROO-FIT accreditation for your installation online by setting up an account on the Renewables and CHP Register. This can be done up to two months before your installation is carried out. This application is then automatically sent to Ofgem. Ofgem will confirm your eligibility and provide your accreditation details. You then need to inform your FIT supplier that you wish to register for FIT payments and provide them with your accreditation details and application form. Your FIT supplier will confirm that you qualify for the scheme and the terms of your FIT agreement.
If you are adding solar panels to an existing solar PV system your FITs payments will be dated from the date the panels were commissioned rather than the application receipt date.
|Total installed capacity (kW)||Generation tariff with eligibility date 1 Nov 2012 – 31 Jan 201||Lower tariff (if energy efficiency (EPC) requirement not met) with eligibility date 1 Aug 2012 – 31 Jan 2013|
|<4kW (new build and retrofit)||15.44p/kWh||7.1p/kWh|
Solar PV tariffs are being reviewed every 3 months and adjusted according to the level of uptake of the technology. As more customers install micro generation technology, the technology becomes cheaper, reducing the need for the same level of FIT payment. These adjustments will only apply to new customers, however – when your FIT is set, its value does not change.
Hydroelectricity, Wind turbines and Micro-CHP:
|Technology||Tariff band (kW capacity)||Current generation tariffs||Generation tariffs from 1 December 2012||Export tariff from 1 December 2012|
|>15 to <100||19.6p/kWh||19.6p/kWh||4.5p/kWh|
|>1.5 to <15||28p/kWh||21.0p/kWh||4.5p/kWh|
|>15 to <100||25.4p/kWh||21.0p/kWh||4.5p/kWh|
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