8/3/2019 Feed in Tariff update

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FEED-IN TARIFFS (FITS)Taken from DECC.GOV.UK

TheFeed-in Tariffs (FITs) schemewas introduced on 1 April 2010, under powers in theEnergy Act2008.

Through the use ofFITs, DECC hopes to encourage deployment of additional small-scale (less than5MW) low-carbon electricity generation, particularly by organisations, businesses, communities andindividuals that have not traditionally engaged in the electricity market.

This will allow many people to invest in small-scale low-carbon electricity, in return for a guaranteedpayment from an electricity supplier of their choice for the electricity they generate and use as well asa guaranteed payment for unused surplus electricity they export back to the grid.

FITswork alongside theRenewables Obligation (RO) which is currently the primary mechanism tosupport deployment of large-scale renewable electricity generation and theRenewable HeatIncentive (RHI)which, when implemented, will support generation of heat from renewable sources at

all scales.

WHICH TECHNOLOGIES ARE ELIGIBLE FOR FITS?

Small-scale low-carbon electricity technologies eligible for FITs are:

wind

solar photovoltaics (PV)

hydro

anaerobic digestion

domestic scale microCHP (with a capacity of 2kW or less) a domestic scale microCHP pilot willsupport up to 30,000 installations, with a review to start when the 12,000th installation is completed

WHAT ARE THE BENEFITS OF FITS?

There are three financial benefits from FITs:

Generation tariff the electricity supplier of your choice will pay you for each unit (kilowatt) ofelectricity you generate.A table of tariffs[External link]has been published by government

Export tariffif you generate electricity that you dont use yourself, you can export it back to the grid.You will be paid for exporting electricity as an additional payment (on top of the generation tariff)

Energy bill savingsyou wont have to import as much electricity from your supplier because aproportion of what you use you will have generated yourself

HOW DO I APPLY FOR FITS?

Wind and solar PV installations with a declared net capacity of 50kW or less, and microCHP projectssupported through the pilot, will have to use theMicrogeneration Certification Scheme (MCS)[Externallink]to be confirmed (subject to other eligibility checks) of their eligibility for FITs.

Any other technology and scale of project must be accredited through a process based on the existingRenewable Obligation process, known as the ROO-FIT process. Further information on the ROO-FITprocess is available fromOfgem.[External link]

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