FiTs (Feed-in Tariff)

What is the Feed-in Tariff

Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010. And isn’t available in Northern Ireland – although this is under review.

Under this scheme energy suppliers have to (compulsory for big six suppliers) make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity panels(PV) or wind turbines.

The scheme guarantees a minimum payment for all electricity generated by the system, 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 microgeneration technology installed you should experience a monthly reduction in your electricity bill and then receive an income from your Feed-in tariff provider.

 How the scheme works

If you are eligible to receive the FIT then you will benefit in 3 ways:

1. Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. You will receive 41.3p for every unit that you generate. This rate will change each year for new entrants to the scheme, except for the first 2 years, but once you join you will continue on the same tariff for 25 years. This tariff will also rise with inflation.

2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.

3. Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

This table shows the tariffs that are available for different size systems

Use your roof space to generate revenue

Your roof space could provide you with long-term financial return in an eco-friendly way. Installing the right solar photovoltaic (PV) systems for your specific location can generate clean energy and gain a great return. A lucrative and secure financial gain while helping reduce carbon emissions and your own carbon footprint.

Invest yourself – When you invest in your own solar power plant on your roof, you can benefit from the electricity yourself to reduce bills and save money. In addition take advantage of Feed-in Tariffs to gain regular and predictable revenues guaranteed by the Government. You will also be actively supporting your own environmental credentials by contributing towards a low carbon economy.

Rent your roof out - Through Echome we can offer your roof space as a potential site for investment and we can source investors who are willing to underwrite the cost of equipment and installation. Such investors are carefully vetted and assured to be financially sound. With no capital outlay required, you can use the electricity generated by the modules on site. Potentially saving you £1,200 per year.