The Feed in Tariff Scheme (or FIT scheme as it is commonly referred to as) started in April 2010 throughout England, Scotland and Wales and is currently being reviewed for inclusion in Northern Ireland.
The scheme itself encourages energy suppliers to make payments to households that generate electricity using ‘green’ methods such as solar panels. We’ve covered the FIT scheme in more detail below, including how to find out if you qualify for FIT payments.
The Scheme Itself
The Feed in Tariff Scheme offers the consumer a minimum payment for the total generated electricity by the system as a whole, plus an additional payment for the electricity given back to the grid. This coupled with the savings made on your electricity bills are the key reasons why the FIT scheme has grown in popularity at such a rate.
Saving Money
The Feed In Tariff Scheme is designed so that you generate a monthly income that is significantly higher that the repayment for your solar technology (usually based around a 25 year agreement). The reduction in your monthly energy bill, coupled with the additional income received from your energy provider for ‘selling back’ electricity means that the panels can comfortably pay for themselves over time. Here’s how the average household saves over £900 per year:
Generation Tariff: This is the set amount paid by your chosen energy supplier for the generation of every kWh or unit of electricity your new solar panels generate. The rate set here continues for the duration you own the solar panels.
Export Tariff: This is where the consumer has the opportunity to sell back any unused or unwanted units of electricity back to the supplier, at a rate of 3p for every kWh of electricity generated by your solar panels.
Reduced Energy Bills: How much electricity you choose to generate through photovoltaic solar panels directly affects your electricity bill. The more free solar electricity you produce, the less energy you will have to ‘buy’ from your supplier.
What Does the Scheme Cover?
The FIT scheme covers a variety of technologies used to generate energy (though the level of funding varies) such as Photovoltaic solar panels (both roof mounted and stand alone varieties), Hydrolectric technology, Micro CHP to a degree and Anaerobic digestion technologies.
Do I Qualify for The Feed In Tariff Scheme?
Qualification for the FIT scheme is fairly straightforward. If your energy saving technology was installed between 15/072009 and 31/03/2010 and you applied to the Feed in Tariff Scheme before 01/04/2010 you qualify for the FIT payments. Similarly, if your solar technology was fitted post 01/04/2010, and was an MCS (Microgeneration Certification Scheme) approved product, fitted by an MCS registered fitter you will also apply for the FIT payments.
The easiest way to find out more about the Feed In Tariff Scheme is to fill in our quote form for expert advice:
