Feed-in Tariffs

Feed in Tariffs

The Government has recently introduced the Feed-in Tariff for microgeneration products. The scheme provides payment to those using microgeneration technologies to produce low carbon energy - even if they use the energy themselves.

Feed-in Tariffs- the facts

Feed-in Tariff (FIT) is a financial support scheme introduced by the Government from April 2010 to encourage the uptake of small-scale microgeneration technologies that generate electricity, such as Baxi Ecogen micro-CHP. All eligible microgeneration systems already installed will qualify from that date. The scheme is also known as the 'clean energy cashback plan'.

British Feed-in Tariffs will consist of two parts, a generation tariff and an export tariff.

Generation tariff - the electricity supplier will make a fixed payment to the householder for every kilowatt hour (kWh) of electricity they generate.

Export tariff - the electricity supplier will pay a fixed amount for every kWh of electricity exported by the householder back to the electricity grid.

The announcement of the introduction of Feed-in Tariffs means that Phase 1 and Phase 2 of the Low Carbon Building Programme have now closed to all new applications for electrical microgeneration grants. This decision came into effect at 5pm, Wednesday 3rd February, 2010.

If you would like to know more about the Low Carbon Building Programme, visit www.lowcarbonbuildings.org.uk/Grants-for-your-home/Announcement.

How long will the tariffs be paid for?

Feed-in Tariffs are tax free and will be paid over a period of a minimum of 10 years from the date the system is first registered. This tariff is available only for 40,000 micro-CHP installations. A review will take place when 16,000 units have been installed.

The benefits

The biggest benefit to the householder is that you can use the electricity they generate on-site to offset some or all of the electricity you would otherwise have to buy from their energy provider, therefore reducing your electricity bill.

If you use microgeneration technology you will receive a guaranteed premium payment for all of the electricity produced, regardless of whether you use it yourself or send it back to the grid.

The generation tariff depends on the type of technology installed. For micro-CHP technologies, like Baxi Ecogen, it is set at 10p /kWh. For solar PV starts at 29.3p /kWh but the actual payment will depend on the system and how it's installed.

How you can make the most of the Feed-in Tariff

When you have a microgeneration system installed, you must notify your utility provider and they will pay you the Feed-in Tariff. Click hee to find out more on how Get FiT with Baxi Ecogen.

The utilities are still developing the systems that will administer Feed-in Tariff payments but it is likely that Feed-in Tariff values will appear as a separate line on the householder's utility bill.

Eligible technologies

Feed-in Tariffs are intended to support all microgeneration electricity generation sources used below 5MW. However, the Government is initially supporting the following renewable technologies:

Anaerobic digestion
Hydro-power
Solar photovoltaics
Wind power
Gas-powered combined heat and power (Micro-CHP) such as Baxi's Ecogen

Fuel cells could be added in the future.

If you have any questions about how Feed-in Tariffs could benefit you, visit our Get FiT with Baxi Ecogen page for more information.