Feed in Tariffs – What are they? A new policy that pays you to install microgeneration tecnologies on your building.

Feed -in tariffs (FIT’s) are a policy that becomes active as of April 2010, that, together with the Renewable Heat Incentive (RHI) to be introduced in April 2011, will incentivise you to install a micro-generation technology on your property. Both schemes aim to broaden the energy supply mix and boost the low carbon revolution. The UK currently gets 5.5% of its electricity from renewable sources. The aim is to increase this to 15% by 2020.

“The feed-in tariff will change the way business and households think about their future energy needs, making the payback for investment far shorter than in the past”, said Ed Milliband, Seceretary of State for Energy and Climate Change.

This “clean energy cashback” will allow many people to invest in small scale low carbon electricity, in return for a guaranteed payment both for the electricity they generate and export. Ref: http://www.decc.gov.uk

Even if you use the energy you produce to power your own appliances, you will be paid for it. You will also be paid for any electricity you supply to the national grid.

Whats in it for me? Presuming you generate 2.5kw from a small wind turbine or photo-voltaic cells, you could be £1040 per year better off, according to the Department for Energy and Climate Change.

Who is elligible? Individuals, households, community groups and small businesses.

What sorts of technologies are included in the scheme:

• Wind;
• Solar photovoltaics (PV);
• Hydro;
• Anaerobic digestion; and
• Domestic scale micro Combined Heat & Power unit (with a capacity of 2kW or less)*

Microgeneration schemes are expensive to install. Your installer should be able to advise you of any available grants and loans to mitigate the up-front costs and enable you to save from the day your installation is comissioned.
Further details of the scheme are avalibale at:

www.decc.co.uk
www.carbontrust.co.uk
www.energysavingtrust.org.uk/