Feed In Tarriff

Since April 2010 anyone or any organisation that invests in renewable power schemes up to 5mw can benefit from Feed-In Tariffs.

A typical home might have a 2kw system and a community might install 3 large wind turbines totalling 5mw which could power thousands of homes and an income for 25 years! All Renewable energy technologies and installers will be performance approved under the Microgeneration Certification Scheme.

The purpose of Feed-In Tariffs is to kick start the mass deployment of renewable energy technology and to help meet renewable energy targets with the ultimate aim to bring technology costs down to “grid parity” where public support will no longer be needed. The renewable energy association estimates that with the right level of support technologies such as Photovoltaic Solar Panels will reach grid parity around 2020 and overseas experience shows that costs typically fall by 20% every time the number of installations doubles.

Feed-In Tariffs are currently used in more than 40 countries around the world to boost renewable energy deployment, drive down the cost of renewable energy, increase energy security and to reduce carbon emissions. Many of the countries that have adopted Feed- In Tariffs now benefit from strong renewable manufacturing industries which create employment and export revenue. Furthermore, experience shows Feed-In Tariffs are very effective at attracting investment from homeowners, farmers, communities, the public sector and the commercial sector.

Feed-In Tariffs will pay everyday electricity consumers (households, businesses, farmers, schools, hospitals, etc) for every kilowatt hour (unit) of renewable electricity they generate themselves and this payment will continue for 20 years (25 years for photovoltaic solar panels). Additionally, each surplus kilowatt hour of electricity exported back to the National Grid will receive a minimum payment of 3p per kilowatt hour. The maximum size of renewable electricity installation will be 5 megawatts which will be sufficient to allow community schemes and industrial users to benefit.

Investors will be paid for their renewable generation by their normal electricity supplier from whom they will still purchase “top up” energy requirements and to whom they will sell any surplus generated.

Onsite Renewables are fully conversant with all aspects of Feed-In Tariffs and can advise all clients on all matters relating to the scheme. Please call us on 01442 834700 to discuss Feed-In Tariffs with one of our experts.