Feed in Tariff (FiT) Scheme
As a household or an organisation you will want to understand exactly how you can benefit from the Feed in Tariff and what is involved.
Impact Renewable Energy Ltd t/a Impact Renewables is a Microgeneration Certificate Scheme (MCS) accredited company which means you can benefit from the Feed in Tariff funding for generating your own renewable energy.
The “Feed in Tariff”, guarantees you a payment every year for 20 years! This means for every unit (Kwhr) of electricity you generate, whether you use it or feed it back into the national grid, you get paid.
You are paid if you use it, and you are paid if you don’t.
To be eligible for payments through the Feed in Tariff, your solar PV array must be certified under the Microgeneration Certification Scheme and the array must be installed by an MCS-certified installer.
The below highlights the key points of the Feed in Tariff scheme.
The Feed in Tariffs (FiTs) will offer the following levels of income:
|Solar PV||>10 kW||4.18|
|Solar PV||>10- 50kW||4.39|
|Solar PV||>50- 250kW||2.03|
|Solar PV||>250 – 1 MW||1.69|
|Solar PV||<1 MW||0.57|
What is the scheme about?
The scheme is intended to provide support for small scale generators of renewable energy (installations up to 5MW). The FIT is paid for generation of renewable energy, regardless of its end use. There will be an additional minimum payment for export of the energy generated to your electricity supplier.
What are the timescales for introduction?
The scheme came into effect on 1st April 2010.
Eligibility of technology and installers?
To be eligible for FITs your solar PV array must be certified under the Microgeneration Certification Scheme (MCS) and installed by an MCS accredited installer.
How long will I receive FITs for?
From the date of your installation, your will receive the FIT at that level for 20 years. The FIT will be escalated in line with inflation and the rate is set by OFGEM.
How should I use the energy I generate?
It is in your interests to use the electricity you generate rather than export it. For the simple reason that you pay more for the electricity you buy from the grid and you receive a lower rate for the electricity you export.
How is the scheme funded?
The scheme will be funded by the electricity suppliers, with the share of total cost of the scheme distributed in proportion to their share of the UK electricity market. Ultimately this is paid for by a levy on electricity prices for all UK consumers.
How do I get paid my FITS?
Your electricity supplier will be obliged to pay your FITs. Upon completion of your installation we will provide your information to the central FIT database and this will form the basis of your registration.
What is the Generation Tariff
The Generation Tariff is what your Electricity supplier (EDF, EON, Southern Electric etc…) pays you for all the electricity you generate (whether you use it or not).
This is a guaranteed scheme by the UK Government to remain the same and account for Inflation.
What is the Export Tariff?
The Export tariff refers to electricity that you generate that is not used by you. This electricity is automatically exported to the national grid to your electricity supplier. For example, there will be occasions when you generate more electricity than you are using i.e. when you are away or out of your home, your system will automatically export the surplus to the national grid.
What is Imported Electricity?
Invariably, there are times when you do not generate your own electricity power to cover all the electricity being used in the house. Therefore electricity will be imported from the national grid and automatically bought in the usual way.