Feed in Tariff Explained
The government pays residents to use renewable energy, but these rates (Feed In Tariffs) are set to fall on April 30, 2013. The new rates will be 63% lower than they were at the start of 2012 making it important to make the switch now. Currently, the maximum Feed In Tariff is 15.44p/kWh so make sure you get your system installed today to avoid further cut in rates and make the most amount of money possible.
What The Feed-In Tariff?
The Feed-In Tariff (FiT), otherwise known as the Clean Energy Cashback Scheme, is a government backed scheme which pays you to produce energy from renewable sources, including solar PV panels.
The cash incentive schemes are to encourage homeowners and businesses to invest in renewable energy sources. Feed in Tariffs are available for those who technologies such as Micro CHP (combined heat and power), hydro power, wind turbines or solar panels on their homes and businesses.
Feed in Tariffs are intended to increase the take up of renewable energy so grid parity (when using energy from renewable sources is as economically viable as from fossil fuels) is reached within a reasonable time frame.
Grid Parity
Reaching grid parity is a legitimate concern of most western governments as it is the point at which energy from renewable sources becomes as cheap or cheaper, than national grid power. It is not until grid parity is reached, that solar electricity will become cheap enough for the majority of consumers to use.
The sooner this happens the more effectively global climate change can be tackled.
Solar energy and other renewable energy sources reduce eliminate the need to burn harmful fossil fuels which produce high levels of carbon emissions and are linked with global climate change. Carbon emissions are thought to be unable to pass through the ozone layer, creating a build up of these gases which don't allow heat to escape from the Earth's atmosphere.
It is then reflected back to Earth creating a rise in temperature.Feed in Tariffs are hoped to encourage the more rapid adoption of renewable energy sources, which in turn should help slow down or reverse the trend of using the burning of fossil fuels that produce greenhouse gases.
Feed in Tariff Table
| Band (kW) | Standard generation tariff (p/kWh) until October 31, 2012 | Standard generation tariff (p/kWh) from November 1, 2012 |
| 4kW or less | ||
| 4-10kW | ||
| 10-50kW | ||
| 50-100kW | ||
| 100-150kW | ||
| 150-250kW | ||
| 250kW-5MW | ||
| stand-alone |
The Department of Energy and Climate Change (DECC) will pay households up to 15.44p per kilowatt hour of energy produced using renewable sources. There are different rates for each type of renewable energy source, with solar panels being the highest paid at 15.44p per kWh. This rate was reduced from 43.3p per kWh in April 2012. However, the export tariff has increased from 3.0p/kWh to 4.5p.
Wind turbines attract a cash payment of up to 35.8p per kWh, decreased from 36.2p and hydro power pays up to 21.9p per kWh. Feed in Tariffs for renewable energy pays homeowners and businesses up to 14.7p per kWh for anaerobic digestion and 11p for combined heat and power (CHP) systems.
These cash payments will continue to be made for a period of 20 years for solar panels, 20 years for anaerobic digestion, hydro and wind turbines and 10 years for Micro CHP. The only stipulation for eligibility for Feed in Tariffs is that a Microgenration Certification Scheme (MCS) accredited installer must be used to supply and fit any renewable energy system.
Solar PV Feed-In Tariff
Photovoltaic (PV) solar energy is becoming more and more popular as an alternative energy source in the United Kingdom. Solar PV technology uses renewable, green energy and is supported by both the government and environmental campaigners. Solar PV technology will reduce your standard electricity bills but the Feed-In Tariff scheme offers further financial reward. As the chart above shows you can still earn up to 15.44p/kWh with the solar feed-in tariff, as well as 4.5p per unit that is bought back from the grid.
Microgeneration Certification Scheme
The MCS is the body responsible for the approval of renewable energy products and the accreditation of renewable energy suppliers and installers. In order for the standards of renewable energy technologies to be maintained and improved the DECC charged the MCS with the task of creating and maintaining renewable technology regulation.
It is important that anyone looking for renewable energy system suppliers in the UK should make sure that the suppliers are accredited by the MCS in order for the renewable technology system fitted being able to generate cash payments form Feed in Tariffs.
