Electricity feed-in tariffs were initially announced by the government in 2008 and came into effect in April 2010, offering on-going financial support to small domestic and community renewable energy installations. The electricity feed-in tariff works on the basis that the consumer is paid for each kilowatt hour of electricity their system generates even when this is used in their own home. There is also an additional payment for electricity which is not used and then fed back into the national grid.
Electricity feed-in tariffs can be applied to any form of renewable energy including Solar Photovoltaic Power, Wind Power and Micro-Hydro Power as well as combined heat and power installations. The maximum capacity for the scheme is 5MW (lower for combined heat and power installations). The scheme has been designed to remove uncertainty for those considering installing renewable energy in their home or community building, reduce the pay-back period for renewable energy installations and increase the return available. The fixed period is between 10 and 25 years, depending on the type of technology installed, providing generators with financial security against their investment. The tariffs, which are currently under review, vary depending on the technology and when it was installed – check out the Energy Saving Trust website for more details.
The Renewables Obligation Certificates will continue to be available alongside the electricity feed-in tariffs, but it is only small scale installations which will benefit from the feed-in tariffs.
Source: www.est.org.uk 2011
