What are Feed-in Tariffs and who is eligible?
This is a government scheme that pays you for electricity your renewable system generates. Some people are calling it Clean Energy Cashback. If you qualify to receive the payments, you will benefit in three ways:
- Generation Tariff
For each unit (measured in kWh) of eletricity you generate and use, you get paid a set rate. That rate is fixed for the next 20 years with solar electricity PV for 25 years.
- Export Tariff
For each extra unit of electricity you generate and export back to the electricity grid, you get 3p per KWh from your energy supplier.
- Cheaper Energy Bills
For those times when the weather isn’t doing its job, electricity for your own use will still come from your energy supplier at their standard rate, but you’ll need less of it.
The FITs have been developed as an encouragement to make that initial investment. The intention is that the monthly income from the FITs will more than pay for any long term loan you need for the installation.
Example of Savings
To give you an idea of how savings may add up, here is an example generated using the Cashback Calculator on the Energy Saving Trust website.
You have installed a 2.7kWp Solar PV panel system on your existing 3 bedroom house in Scotland. As the house is mainly empty during the day, you could assume that 50% of your electricity will be exported.
- Generation Tariff income – £974
- Export Tariff income – £35
- Energy Bill savings – £141
Total Income and Savings – £1150 per year
Now, that’s not the full story as you have maintenance and a few other factors to consider, but we can help you with everything you need to know.
If you want to know more, you can always call us on 01382 451717
Technologies Supported by FITs
The following installations up to a size of 5 Mega Watts are covered by FITs:
- Solar electricity (PV)
- Wind turbines
- Anaerobic digestion
- Micro combined heat and power (micro CHP) (limited to a pilot at this stage)
What are the conditions for qualifying for the scheme?
Whether or not you can receive the payments and the level of rates you qualify for, depend on two main factors. The installation date of the system and whether or not the system and the installer are MCS certified.
What is the Microgeneration Certification Scheme?
Through experiences in other countries, it has been discovered that unsafe or poor quality installations can quickly undermine the sustainability of the renewable industries and it doesn’t do much for consumer confidence either.
As a consumer, MCS is on your side. The scheme provides assurance that the installers of your system and the products used are both safe and sound.