What are Feed-in-tariffs (FITs)?
Feed-in-tariffs (FITs) are a government financial incentive to help work towards the United Kingdom’s target of 15% of the energy consumed to be from a renewable source by 2020. The scheme gives financial benefit to those who have renewable energy systems installed on their place of residence.
If you are considering installing a renewable source of energy (such as a solar PV system) you can benefit from the FITs in three ways. You are paid for the electricity you generate, regardless of whether you use this energy or not, what you generate is what you get paid for. You are also paid for the surplus generated energy you sell back to the national grid, meaning for every unit of energy you have generated yourself that you sell back to the grid, you will be paid a fixed rate for 25 years. (Please see below for information of current rates) The final costly benefit would be the savings you make on your energy bill, by using the power you have already generated, there is no need to buy as much from your energy provider which results in a saving on your energy bill, partial protection against future rises in energy prices and of course, a cleaner, greener environment.
To view the current rates for the Feed-In-Tariffs, click here
Who is eligible for FITs?
Essentially, FITs are for everyone, not just homeowners, but landlords, farmers, businesses and even organisations such as schools, hospitals and care homes are eligible to claim FITs after having a renewable energy system installed. The FITs scheme currently covers most forms of renewable energy, with Solar PV being the most popular, but it is only limited to systems producing less than 5 megawatts (don’t worry, that is enough to power a large factory) so virtually every property in the UK is eligible.
When can I claim FITs?
The FITs scheme first went live on 1st April 2010, which means any system installed now will be eligible, also systems installed after July 2009 can qualify for today’s current rates but systems installed before will be able to claim for a lower rate.