FEED-IN TARIFFS (FITS)

Taken from DECC.GOV.UK The Feed-in Tariffs (FITs) scheme was introduced on 1 April 2010, under powers in theEnergy Act 2008. Through the use of FITs, DECC hopes to encourage deployment of additional small-scale (less than 5MW) low-carbon electricity generation, particularly by organisations, businesses, communities and individuals 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 guaranteed payment from an electricity supplier of their choice for the electricity they generate and use as well as a guaranteed payment for unused surplus electricity they export back to the grid. FITs work alongside the Renewables Obligation (RO) which is currently the primary mechanism to support deployment of large-scale renewable electricity generation and the Renewable Heat Incentive (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 will support 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) of electricity you generate. A table of tariffs[External link] has been published by government Export tariff if 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 savings you wont have to import as much electricity from your supplier because a proportion 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 projects supported through the pilot, will have to use the Microgeneration Certification Scheme (MCS)[External link] 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 existing Renewable Obligation process, known as the ROO-FIT process. Further information on the ROO-FIT process is available from Ofgem.[External link]