Feed-in Tarif explained

The Feed-in Tariffs (FITs), became available in the United Kingdom on 1st April 2010, except in Northern Ireland, (this is currently under review).

Under the scheme, energy suppliers, (made compulsory for the largest 6), make regular payments to the owners of qualifying systems who generate their own electricity using low carbon sources such as solar PV or wind turbines.

The scheme guarantees a minimum payment for all electricity generated by such systems, as well as extra payments for any surplus electricity exported back to the grid.

With a suitable microgeneration system installed you can expect to make savings on your electricity bills as well as receiving the incentives outlined above.

If you take out a loan to pay for the installation of your system you will have to take into consideration the cost of the loan.

The Feed-in Tariffs are designed to provide an average monthly income from your microgeneration system significantly greater than the monthly loan repayment over a twenty five year period.

The scheme covers systems upto a maximum output of 5 Mega Watts for the following types:

• Solar electricity (PV), (roof mounted or standalone).
• Wind turbine, (building mounted or free standing).
• Hydroelectricity.
• Anaerobic digestion
• Micro combined heat and power, (micro CHP), (limited to pilot at this time).

The tariffs available and the processes for receiving them vary, depending on the type of technologies installed and whether the system and installer were certified under the MCS scheme.

You will qualify for FIT payment if:

• The technology was installed between 15th July 2009 and 31st March 2010 and you transferred to the FITs before 1st April 2010; Or
• It is installed after 1st April 2010 using and MCS accredited installer.

The whole of this document can be viewed on the Energy Saving Trust website.