feed in tariff

The Feed-in Tariff or "Clean Energy Cashback" mechanism means that you will be paid a premium for generating your own electricity from April 2010.

What you will get:

A payment for every kWh generated - Generation tariff
An additional payment for every kWh exported to the grid - Export tariff
Additional benefit from usage of electricity “onsite” – Avoided costs

How much?

A domestic retrofit PV system can get up to 41.3p per kWh for the next 25 years for the Generation Tariff and an extra 3p for the Export Tariff.

That would mean for a householder with a  current electricty bill of £750/year, you might actually get up to £1500 back.

The general policy of the scheme, as well as the tariff rates, are set by the Government. The administration of the scheme itself is undertaken by the regulator Ofgem and licensed electricity suppliers. The scheme is designed for installations with a net capacity of up to 5 megawatts, and covers PV, wind, hydro and anaerobic digestion technologies. For those installations producing under 50kW or less, it is necessary for the equipment and installer to be MCS (Microgeneration Scheme) accredited, although this does not apply to anaerobic digestion installations. To apply for FITs, installations must receive accreditation according to their capacity. For installations producing 50 kW or less it is necessary to apply through a FITs supplier with their MCS accreditation details. For installations between 50kW and 5MW (and all AD units under 5MW) it is necessary to apply for ROO-FIT accreditation through Ofgem’s Renewable and CHP Register. For more general information on FITs eligibility and the scheme process., see the Ofgem website.

Click here for the FIT Factsheet