FAQ about Feed in Tariff Scheme

The Feed-In Tariff Scheme has gotten a lot of publicity since it was introduced, but along with all of that publicity, there are a few questions that stand out. How much can you really earn through this scheme? Are the payments really being cut? How much does the right technology cost? Here are our answers to some of the most frequently asked questions.

What is the Feed-In Tariff?

Also known as FIT, this scheme began in 2010 and is designed to reward those who have energy-producing technology installed. England, Wales, and Scotland all offer FIT.
How much can be earned through these payments?

The amount that you are able to earn depends on a few factors. First of all, you should take steps to make your home as energy efficient as possible so that the amount of money you can earn from the FIT is optimized. Insulation in the loft and walls of your home is important, as is having energy-efficient appliances.

The amount you earn also depends on the size of the system you have installed. For example, the average small system of 4 kW or less on a newly built property will usually earn you about 21pence per kilowatt hour. On the other hand, a larger solar system could earn you a little bit more than that. If you opt for non-solar technology, your earnings on the feed-in tariff scheme will typically go down.

How much does it cost to have energy-producing equipment installed at my home or business?

The costs of the various energy-producing systems also make it clear that solar will probably be your first choice. The average solar system will probably cost you somewhere around £10,000. Wind turbines are the only less expensive option, but you don't earn as much on the FIT with them as you do with a solar system and they are not appropriate for domestic or smaller commercial buildings.

How do I sign up for the feed-in tariff scheme?

Enrolling in FIT is very simple. All you have to do is have a system installed by a company that has been accredited by the Microgeneration Certification Scheme. The Installers will then give you a certificate that shows that your system is eligible for the feed-in tariff. You then fill out an application with the energy supplier you want to work with and send it along with a copy of your certificate. Upon approval, you will begin to earn money from your energy provider.

How do I receive payments under the FIT?

Payments can come in any of three different ways. The generation tariff is actually a fixed rate that you would receive for the total amount of power your system generates, which is calculated according to a per unit basis. The rate you receive will depend on the date you registered to take advantage of the FIT and the size and type of installation you have.

The export tariff is a rate that you receive on all units of power you export back to the power company because you didn't use them. A smart meter will indicate how much power you have exported, or this is calculated on a 50 percent assumption. Your energy bills will also be lower because you are generating some of your own power.

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