Feed in Tariff Scotland
Introduced in April 2010, the Feed in Tariff (FIT) scheme is a UK-wide Government backed incentive to assist the UK in meeting its carbon emissions targets. Put simply, you are paid by the energy suppliers for each kWh of electricity you generate from renewable sources such as solar and wind. Once your system is registered you are guaranteed to receive the FIT for 20 years and payments are index-linked.
Get Paid to Generate Power
You earn money from the PV solar Feed in Tariff in two ways: You are paid 4.14p per kWh of electricity your solar array generates and you are paid a further 5.03p per kWh of electricity you export back into the National Grid. Combined with significant electricity savings, the FIT ensures that PV solar is an attractive financial proposition that vastly outperforms other savings and investment vehicles.
How the Feed in Tariff Works
Once you have registered your system to receive the Feed in Tariff you will be paid one rate for every kWh of electricity you generate and another rate for every kWh you export back to the Grid. The actual amount of electricity exported is not measured at present. Instead, it is deemed that householders will export 50% of the electricity they generate and, as such, you are paid an export tariff on half the generation total.
The electricity you generate is used in your home to power your equipment and appliances. If the demand is greater than your solar array can provide then electricity is drawn from the National Grid as normal. If the electricity you generate exceeds the demand, the excess is exported to the Grid for use elsewhere.
Qualifying for the Feed in Tariff
To qualify for the Feed in Tariff a Microgeneration Certification Scheme (MCS) certified installer must install one of the following renewable energy technologies:
- PV Solar Panels
- Wind Turbines
- Anaerobic Digesters
- Micro Combined Heat & Power (CHP)
For PV solar installations, your property’s Energy Performance Certificate (EPC) rating must fall within bands A to D at the time of application to receive the full tariff. Those properties that fail to meet this requirement are paid a lower rate. This requirement is to encourage homeowners to ensure their property meets the minimum standards of energy efficiency before considering PV solar.
Once installed, you can register your renewable technology to receive the FIT through an energy provider. The six largest UK energy providers are required by law to make payments through the FIT scheme; many of the smaller energy companies also operate the scheme.
What’s the Catch?
Quite simply, there is no catch. In the absence of a financial incentive, PV solar installations would take too long to offset the investment cost through electricity savings alone. The Government needs nationwide uptake of renewable energy technology to meet its commitment to reduce carbon emissions. Accordingly, the Feed in Tariff was introduced to give homeowners a compelling financial reason to adopt the technology.
To ensure a good rate of uptake the FIT is designed to give an attractive return on investment (ROI). I can accurately project the total FIT revenue and electricity savings my customers can expect over the life of the tariff. Typically, the ROI is many times higher than any savings account or other investment opportunity. Contact me today for a free no-obligations consultation and I will be happy to show you a detailed financial projection and breakdown.
The following is a list of useful websites and resources that relate to the Government Feed in Tariff: