Feed In Tariffs (FITs)

Feed in Tariffs also know as the clean energy cashback scheme, where introduced in the UK by the Government on 1st April 2010.

Under this scheme your energy supplier will make regular payments to householders, any community group or businesses that generates their own electricity from renewable sources such as solar electricity (PV) panels, wind turbines and hydro turbines.

The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for any electricity exported to grid. These payments are in on top of the savings made by using electricity which had been generated onsite.

About the Feed In Tariff Scheme

The scheme covers certain electricity generating technologies up to an installation size of 5 Mega Watts, these include:

Solar electricity (PV)
Wind turbines
Hydroelectricity
Micro combined heat and power (mCHP) (limited to a pilot at this stage)

Feed in tariffs are only available on systems installed by Microgeneration Certified Installers (MSC) and the process for receiving them vary, depending on when the technology was installed.

FIT payments only can only be received if the technology was installed between 15th July 2009 and 31st March 2010 and you transfered to FITs before 1st April or you have a system installed after 1st April 2010 using an MCS certificated product and installer. Alternative Energy Store UK Limited are MCS certified to install Solar Photovoltaic Systems and Solar Thermal Systems

How the Feed In Tariff Scheme Works

If you are eligible to receive a feed in tariff then you will benefit in 3 ways:

1. Generation tariff. This is a set rate paid by the energy supplier for each kWh of electricity generated. After the first two years starting April 2010 the rate will change each year for new entrants to the scheme. However once you have joined the Feed in Tariff scheme you will continue on the same tariff for 20 years or 25 years in the case of solar electricity (PV). You payments are index linked and tax free.

2. Export tariff - you will receive a further 3.1p per kWh from your energy supplier for every unit you export back to the grid. The export rate is the same regardless of technology installed.

3. Bill savings - you will be making savings on your electricity bills as generating electricity to power your appliances means you will not have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Deemed export
Currently domestic installations are likely to have their export deemed (estimated) at 50% of that generated in most cases until smart meters are rolled out.

Table of Feed-In Tariff levels for the year to 31st March 2012