Feed In Tariff

The UK government is committed to making a significant reduction to our carbon emissions over forthcoming years and to achieve this they need to encourage widespread adoption of renewable energy technologies by industry, commerce and the residential sector.

In April 2010 a series of incentives were introduced which, coupled with the significant savings that accrue from offsetting fossil fuels with free or cost-effective green energy, provide a very attractive rate of return on your initial investment and a reduced payback time.

The savings on your bills and income from the incentives will depend on your property, energy use and the traditional fuel you are replacing. We will always provide a detailed projection of the savings you can make specific to your own property as part of your installation.

Put simply, the Feed-in Tariff (FiT) is payment made to you annually for generating electricity from a range of microgeneration technologies, such as Wind Turbines and Solar PV.

Under the FiT you are paid for every kWh unit of electricity you generate, irrespective of whether you go on to use the energy in your home. You are also paid an additional sum for energy exported to the National Grid.

Once you have entered into the FiT scheme your payments will increase annually in line with inflation and are guaranteed for 20 years. However, to encourage uptake the rate offered to new entrants to the scheme will reduce over time, so the sooner you sign-up the higher your returns will be.

As mentioned above, all the electricity you generate is free for you to use and every unit you use is a unit you don’t have to buy from a traditional electricity suplier. In addition, for domestic installations, you will be paid for exporting half the electricity you generate, even if you actually use more than 50%. (Speak to us about ways to maximise the use of your green electricity.)

What all this means is that an investment in a technology such as Wind Turbines or Solar PV will provide you with a regular payment equivalent to a rate of return typically between 8% and 12%, tax free and index linked. Where else can you find a guaranteed rate of return this attractive?

View the Feed In Tariff Fact Sheet