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Feed In Tariff – Information
What is a feed in tariff? A feed in tariff is a specially designed tariff for people who produce their own electricity supply.
Our Government is promoting low-carbon technologies with an aim to reduce the impact of carbon on the environment . We have a legally binding target to ensure that we are producing 15% of our energy from renewable energy sources by 2020.
In April 2010 the Government introduced a special tariff called the Feed in Tariff (FIT) scheme. This scheme allows home-owners who produce their own electricity to benefit financially.
The Feed in Tariff scheme is also known as the ‘clean energy cashback’ scheme. A homeowner who is generating their own electricity will;
Are feed in tariffs only for solar panels?
No. Electricity can also be generated from other sources such as wind turbines, combined heat and power, hydroelectricity and anaerobic digestion.
In order to be eligible for the Feed in Tariff there are certain qualifying criteria. For example the technology must have been installed between the 15th July 2009 and 31 March 2010. If it has been installed on or after the 1st April 2010 then the product must be an MCS certified product and the installer must be an MCS certified installer.
As the cost of heating our properties is increasing and possibly set to increase further over the course of the next few years, many people are looking at solar power as an alternative energy supply. The Feed in Tariffs are not only for homeowners, they are also for commercial properties, hospitals, care homes etc.
More and more roofs around the U.K. are being adorned with solar panels and the figure of new installations is set to increase.
How does the scheme work?
To put it very simply eligible solar panel owners need a supplier to sell their energy back to and they also remain connected to the national grid so that if they need to purchase more electricity they can do so.
How is the electricity measured?
The meters need to measure three aspects. They need to measure the generation of the energy, the energy imported and finally the energy exported.
All homeowners have a meter that measures the import of energy. This is the one we are all familiar with and the one which our ‘normal’ electricity bills are measured on.
When a property installs their eligible renewable system a generation meter is provided.
The generation meter is an interim solution because eventually all properties will have a smart meter that will be able to cope with all three of the different aspects required.
Until Smart Meters are introduced country wide homeowners will need to read their own meters and the frequency will be determind by the energy company themselves.
The Best Value Feed in Tariff
Solar panel owners are able to look around for the best value Feed in Tariff. The Government provides a recommended cost which the supplier is expected to pay for buying the energy from the homeowner. Due to the increase in solar power installations competition has now been generated between the differing suppliers on the market and some are paying more for the electricity than others.
It is therefore in the consumers best interest to review their feed in tariff. There may be a supplier who is currently offering to pay more per Kwh than their current deal and it would be prudent to move supplier as this would increase the income made on their investment.
How much income will feed in tariffs generate?
The tariff base level is set by the Government and is subject to change. In addition to this the amount of electricity generated can differ depending on the installation size, therefore the amount of income generated will vary from property to property.
When are Feed in Tariff payments made?
This depends on the supplier you choose, however payments are typically made via the normal utility bill. If you have generated more electricity than you have used then your bill may very well be a credit rather than a debit. Homeowners will typically have to read their generation meter on a monthly basis in order to ensure that the figures are all correct although this is specified by their supplier.
Where does the payment come from?
A number of people believe that the payment actually comes direct from the Government. It doesn’t! It is paid for by the energy companies themselves.
Should You Install Solar Panels?
There are many positive reasons to installing eligible renewable energy in your property. The advantages are numerous.
Yet there are a lot of people who don’t know where to start in the process and have lots of questions and concerns. This is only because they are not familiar with the process or the technology and it can all seem confusing.
If you are going to look to have an eligible renewable system installed the process is straightforward.
Initially seek the advice of an expert. The expert should understand which technology is right for you, and how to maximise your investment.
Secondly you will need a supplier. All MCS installers have to be registered a list of them can be found at this website www.realassurance.org.uk
The last step in the process is to get a registered supplier for your Feed in Tariff and this is where I can help you.
Call me on 01727 220548 to discuss your individual requirements.