Feed-in TariffsBen Wallace
What are Feed-In Tariffs?
Feed-In Tariffs are payments to ordinary energy users for the renewable electricity they generate.
By 2020 the government’s target is for 15% of total energy should be generated from renewables, by introducing the Feed-in Tariffs (also known as FIT’s) in April 2010 it was hoped that the level of renewable energy generated in the UK would increase.
FITs are available to everyone and the tariffs are used to incentivise people to use solar power and encourage us to all be more environmentally responsible. The tariffs were produced to subsidise the initial cost of installing a solar power system, and allow homeowners, landlords, businesses, and organisations to earn a return of up to 13% per annum. The FITs are guaranteed for 20 years and are scheduled to be open to new installations until the end of March 2021.
Benefits of FIT’s:
- A payment for all the electricity you produce, even if you use it yourself
- Additional bonus payments for electricity you export into the grid
- A reduction on your standard electricity bill, from using energy you produce yourself
Earlier in 2016 the government publicised changes to tariffs within the Solar PV sector, seeing the FITs cut and new measures brought in for new installations. FIT’s may have been reduced, but the cost of installing a solar power system has greatly reduced in recent years, which means the return on investment for solar panel installations remains high. Consumers can also benefit from additional energy saving devices which can be added to new and previously installed systems, such as the Solic 200, which generates free hot water for the resident. The Solic 200 automatically diverting surplus energy generated by solar panels and converting it into hot water before it’s exported to the national grid, the homeowners could save hundreds on their utility bills. For more information contact the team on 01293 843 400.