Feed-in Tariff Explained

From 1st April 2010, Feed-in-Tariffs (FITs) became available adding benefit to the homeowner for installing a renewable electricity production system, whereby energy companies are obliged to pay householders a regular tariff for their production of renewable electricity from sources such as solar PV.

Tariff levels, for technologies installed between 15th July 2009 and 31st March 2012 of most significance to householders. (Source: Energy Saving Trust)

Technology Scale Tariff Level Tariff Lifetime
Solar Electricity = 4 kW Retro Fit 43.3p 25
Solar Electricity = 4kW New Build 37.8p 25
Wind = 1.5kW 36.2 20
Wind 1.5 - 15kW 28 20
Micro CHP = 2kW 10.5 10
Hydroelectricity = 15kW 20.9 20

*As of 1st April 2011 which take into account rise in Retail Price Index (RPI) which was 4.8%.

What is a Feed-In-Tariff?

The scheme guarantees the homeowner a minimum payment for every single unit of electricity produced by their installation. The homeowner will receive 43p for every unit produced, and an additional 3p for individual units sold back to the grid. For more information refer to the DECC and Energy Saving Trust websites.

The value of the FIT is linked to the Retail Price Index (RPI) for 25 years from the date of notification, defined by the MCS installer and is regulated by Ofgem who run the database of accredited installations known as the central FIT register. They also accredit small scale generators or small/micro scale anaerobic digestion systems. In addition to this they also manage the levelisation procedure. Another of Ofgem responsibilities is maintaining supplier compliance with the specific requirements of the FIT scheme.

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