Feed in tariffs

The FIT is the biggest change to utility tariffs in the UK since tariffs were introduced. It is a long-term legislated Government incentive to motivate homeowners and industry to generate their own electricity. It has been brought about due to the un-sustainable demand on the National Grid, and is a copy of a similar scheme that is already operating throughout Europe. Our FIT starts in April 2010.

Under the scheme, the scheme will PAY YOU for every unit of electricity you generate, even if you use it all yourself! In addition, every unit of electricity you generate and use is a unit you do not need to buy from the grid. Any unused generated electricity is sent to the grid, and you are paid an additional bonus for it.

The price you are paid per unit when you join the scheme is guaranteed for 25 years for PV systems, and 20 years for Wind systems. Be aware though, that the tariff price will drop by a percentage every year, so the earlier you join the scheme the higher your guaranteed unit price will be.

The following graph shows proposed generation tariff levels, and is taken directly from the Government paper.

CURRENT TABLE OF GENERATION TARIFFS 

Scale	Current tariff *	Tariff from April 1
4kW (new build)	37.8p	21.0p
4kW (retrofit)	43.3p	21.0p
>4-10kW	37.6p	16.8p
>10-50kW	32.9p	15.2p
>50-100kW	19p	12.9p
>100-150kW	19p	12.9p
>150-250kW	15p	12.9p
>250kW-5MW	8.5p	8.9p
Stand alone	8.5p	8.9p

Renewable Heat IncentiveIf you are a saver or investor, or just want your money to work better for you, we can show you how an electricity-generating installation can secure you an annual return of up to 20% a year, guaranteed for up to 25 years!

The Government has announced a forthcoming incentive Tariff, similar to the electricity-based FIT, where owners of Thermal, Heat-Pump and Biomass installations will be paid annual cash awards towards running greener heating systems. The scheme commences in April 2011, and any installation installed from 15th July 2009 will be included for payments.

Payments will be guaranteed for up to 23-years, will further reduce the running costs of the installation and slash the period in which the installation pays for itself. If the scheme runs in the same way as the FIT, payments will be index linked, and tax free. The proposed payment chart is as follows:

Technology	Scale	Tariff (P/KWH)	Tariff Lifetime
Small Installations
Solid Biomass	Up to 45kW	9.0	15
Ground Source Heat Pumps	Up to 45kW	7.0	23
Air Source Heat Pumps	Up to 45kW	7.5	18
Solar Thermal	Up to 20kW	18.0	20
Medium Installations
Solid Biomass	45kW - 500kW	6.5	15
Ground Source Heat Pumps	45kW-350kW	5.5	20
Air Source Heat Pumps	45kW - 350kW	2.0	20
Solar Thermal	20kW - 100kW	17.0	20