Assistance With Understanding Feed In Tariffs
Are you considering investing in renewable energy technology for your home? Feed-In Tariffs (FITs) could be the incentive you need to make the switch to clean energy sources.
FITs are a government scheme that pays households and businesses for generating their own electricity from renewable sources. The scheme was introduced in 2010 to encourage the uptake of small-scale renewable energy technologies such as solar panels, wind turbines, and hydroelectric systems.
Types of Payments
The scheme offers three types of payments:
- Generation tariff – pays you for every unit of electricity you generate, regardless of whether you use it or export it to the grid.
- Export tariff – pays you for every unit of electricity you export to the grid.
- Energy savings – allows you to save money on your energy bills by using the electricity you generate rather than buying it from your supplier.
The tariff rate you receive depends on the type of technology you use, the size of your installation, and the date you joined the scheme. FITs rates are reviewed annually and adjusted according to the prevailing market conditions.
FITs are a great way to earn money from your investment in renewable energy, as well as reducing your carbon footprint and energy bills. However, it's important to note that the scheme is due to close to new applicants in April 2019, so it's worth acting fast if you're considering making the switch.
Criteria for Application
If you're interested in applying for FITs, you'll need to meet the following criteria:
- Your installation must be MCS certified – this means it meets the required quality standards.
- Your installation must be below 5MW – this is the maximum size allowed under the scheme.
- Your installation must be connected to the grid – this allows you to export any excess electricity you generate.
- You must have an Energy Performance Certificate (EPC) – this is a requirement for all eligible installations.
FITs offer a great incentive to invest in renewable energy technologies for your home. By generating your own electricity and exporting any excess to the grid, you can earn money from your investment and reduce your carbon footprint. However, with the scheme closing to new applicants in April 2019, it's important to act fast if you're considering making the switch to clean energy sources.