Feed-in energy tariffs

The government has announced that the Feed-in Tariff payment scheme (FiT) will officially end on 1 April 2019.

But you can still benefit from the FiT for up to 20 years if you get your application in before 31 March 2019. Not to mention the savings you’ll make on your energy bills.

Peter Earl From the Energy team
4
minute read
posted

What are the benefits of the Feed-in Tariff Scheme?

There are three main perks of the FiT Scheme:

  • get paid for generating your own electricity
  • sell back to the Grid any energy you produce and don’t use
  • make savings on your energy bills

Not to mention doing your bit for a cleaner environment by helping to reduce your carbon footprint.

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How does the Feed-in Tariff Scheme work?

Once your renewable energy technology has been installed by an MCS-accredited technician, you can apply for FiT payments through your energy provider.

Larger suppliers, including the ‘Big Six’, are required by law to take part in the scheme, although lots of smaller suppliers have signed up too.

A limited number of applications are accepted each quarter. It’s called a ‘deployment cap’. So even if you’re eligible, you might not be accepted if the quota has already been reached.

Payments are usually quarterly and are based on the meter readings you submit to your energy supplier. If accepted, you could receive payments for up to 20 years – 25, in some cases.

If you have a smart meter, your readings will be automatically sent to your energy supplier. If you don’t have a smart meter, you’ll need to have three different electricity meters to measure the three types of energy flow: generation, import (you’ll already have this one to pay your energy bills) and export. 

How much will I be paid from Feed-in Tariffs?

The FiT scheme has two types of payment:

Generation tariff

You’ll be paid by your energy supplier for each kWh hour of electricity you produce. The rate depends on the installation date, the size and type of technology and the overall energy efficiency of your home. Where you live is also a factor. According to the Energy Saving Trust, you could earn between £115 and £165 a year.

There are three rates for solar panels: high, middle and low. Homes with a valid Energy Performance Certificate (EPC) and an energy rating of A to D, are eligible for the highest payment rate.

Export tariff

This is a bonus payment for any extra electricity you generate and sell back to the National Grid. The current tariff has a set price of 5.24 pence p/kWh. According to the Energy Saving Trust you could earn between £85 to £110 a year.

If you know the size of your system, you can get a more accurate estate of FiT payments from the Energy Saving Trust’s Solar Energy Calculator.

Why is the Feed-in Tariff Scheme ending?

The FiT scheme has been so successful that the government has decided to reallocate funds to finance bigger projects, which benefit the whole country.

To date, the scheme has provided around 800,000 households and 28,000 businesses with clean solar power.

The cost of solar panel installation has also fallen by around 90% since 2010, so it’s thought that the FiT scheme is no longer needed. 

Is it still worth getting renewables?

Absolutely. Even if you don’t make the 31 March 2019 deadline, you can still save money on your energy bills with renewable tech like solar power and wind turbines. And don’t forget the huge reduction in your carbon footprint.

And whether you have renewables or not, lots of renewable energy suppliers offer green tariffs. Compare standard and renewable energy prices with us today and find the right tariff to suit your needs.

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