Feed-in Tariff scheme (FITs)
What is the Feed-in Tariff scheme?
The Feed-in Tariff scheme (FITs) is a new environmental programme introduced by the Government to promote widespread uptake of a range of small-scale renewable and low-carbon electricity generation technologies. The scheme will require Licensed Electricity Suppliers (FIT Licensees) to pay a generation tariff to small-scale low-carbon generators for electricity generated (whether or not such electricity is exported to the national grid) and an export tariff to them where such electricity is also exported to the national grid.
It is intended that FITs will open up low-carbon electricity generation beyond the traditional energy companies by making it more cost effective for communities and householders to buy the units.
The scheme is applicable to a number of technologies up to a maximum capacity of 5MW.
Suppliers will play the main customer-facing role for the scheme, registering eligible installations processing data and making payments. Ofgem is running the behind the scenes administration of the scheme. However, the Energy Saving Trust (EST) will be the initial port of call for anyone wanting to find out more about home electricity generation and how they join the scheme. The EST can be contacted on 0800 512 012, or at www.energysavingtrust.org.uk. Businesses looking to participate should contact the Carbon Trust to find out more on 0800 085 2005 or at www.carbontrust.co.uk
Applications for accreditation under the Feed-in Tariff will go through one of two routes:
Customers using renewable technologies equal to or less than 50Kw which are wind, solar PV or hydro based will need to ensure their units are installed and accredited by Microgeneration Certification Scheme (MCS) certified installations under the FITs legislation. Non-MCS certified installations of 50Kw or less of wind, solar PV or hydro will not be eligible for FITs.
Once the installation has been completed by the MCS installer it will have to be registered onto the MCS installation database before a claim for FITs can be made.
All installations that are eligible and are between 50kW and 5MW in capacity will need to apply to Ofgem for accreditation through Ofgem’s Renewable and CHP Register www.ofgem.gov.uk.
Upon completion of this process, applicants will need to contact a supplier with the accreditation details.
FIT Payment Rate Table with Year 1 & 2 Retail Price Index adjustments
A formal list of participating suppliers is available at www.ofgem.gov.uk/fits. Before a FIT supplier can make payments, applicants will need to agree a statement of FIT terms which set out the basic rights and responsibilities between you and the FIT supplier. More details will be available from the supplier.
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What is the Feed-in Tariff scheme (FITs)?
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