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Feed-in Tariffs (FITs) became available in Great Britain as of 1st April 2010. Under this scheme energy suppliers make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as photovoltaic's or wind turbines.

The scheme guarantees a minimum payment for all electricity generated by the system, ie used by the householder, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.

Once you have a micro generation technology installed you will experience a monthly reduction in your electricity bill because you are producing your own electricity and then receive an income, on top of those savings, from your Feed-in tariff (clean energy cash back) provider

Use the to see how purchase price and loan can impact on payback times.

 

Understanding Electricity Feed-in-Tariff’s


Key terms:

Feed-in-Tariff (FiT) = The FiT (also known as the Clean Energy Cash Back) is a collective term which covers everything related to the electricity your PV system generates and how much you get paid for it.

Under the FiT there are two tariffs; the Generation Tariff and Export Tariff.

Generation Tariff = This is a set tariff through which your electricity supplier pays you a fixed amount for every unit of electricity your PV system generates for 25 years, whether you use this electricity or export it to the national grid

Export Tariff = This is the amount you earn in addition to the Generation Tariff for any electricity you don’t use and export back to the national grid, through your electricity supplier

Avoided Costs = These are the savings you make on your electricity bill by not having to import electricity from the national grid, and by generating your own electricity ‘on-site’

Imported Electricity = This is the amount of electricity you import direct from your electricity supplier.

To encourage people to install solar electricity systems sooner rather than later (so for the more immediate benefit of the environment) the Government has introduced a generous Generation Tariff for all solar electricity installs fitted before April 2012.

The Generation Tariff is set at 41.3p/kWh. By installing a solar electricity system now (and before December 12th) you are guaranteed to be paid this rate for the lifetime of your system (set at 25 years).