Renewable Energy & The Uk Feed In Tariff
If you choose to fit technology which generates heat or power, that uses Low Carbon or Renewable sources to do so, you could receive income from your utility company or energy supplier in the form of a Tariff that replaced Governments grants in 2010.
This means that the owner of the installation gets paid for generating renewable energy whether they use it or not (any excess electricity gets exported to the National Grid), which gives a twofold benefit because using your own power means that you buy less and therefore your utility bills will reduce in line with the reduction in your consumption.
Types of Feed in Tariff’s (financial incentives to use renewable power & heat sources)
- Solar Photovoltaics (Solar Panels)
- Wind Generation
- Power from Hydro-electric sources
- anaerobic digesters (biomass)
- Combined heat & power (Micro-CHP)
Government departments decide the Tariffs, such as the DECC (Department for Energy and Climate Change) and the scheme is regulated by OFGEM. Tariff Payments are mandated by law and are made by your utility supplier.
There are some requirements for eligibility to receive the payments such as:
- Products & the company who installs the products must be MCS Certified (Microgeneration Certification Scheme)
- Hydro & Anaerobic should complete the ROO-FIT scheme (info here)
- The amount of Tariff payable can depend upon your property’s EPC Rating (Energy Performance Certificate)
- EPC does not apply for Hydro, Micro-CHP or Wind
Summary of solar PV tariffs
Solar Photovoltaic Panels:
- An Energy Performance Certificate rating of “C” or better is required to get the higher rates.
- Tariff rate for exporting Solar PV: 4.77p/kWh.
- Payment life-span: 20 years.
- Incomes will be reviewed quarterly & revised accordingly.
Hydro, Wind & Heat:
- EPC not necessary.
- Tariff rate for exporting: 4.85p/kWh.
- Payment life-span: 20 years for Water & Wind / 10 years for Heat (Micro-CHP).
- Accreditation via ROO-FIT (not the Microgeneration Certification Scheme)