The Feed In Tariffs are tariffs introduced by the government to encourage Renewable Energy micro generation. The most important aspects of FIT’s are outlined below:
- FITs are paid by the utility company for every kWh of electricity generated from the renewable energy system.
- The FITs are paid to the owners of the generating systems: homeowners, tenants, businesses, schools, hospitals, farmers, landlords etc.
- Tariffs change depending on:
i) When the system was installed
ii) The type and size of system
iii) Limited to 5 MW installed capacity
- Indexation is calculated annually as a % increase or decrease over a period of 12 months ending 31st December.
Which Renewable Energy Technologies can be used under the Feed In Tariffs(FITs), to generate electricity?
· Aerobic Digestion
· Photovoltaics (PV)
· Wind Turbines
· Hydro Power
· Micro CHP
How do you make money from Feed In Tariffs (FITs) ?
- The owner of the system will get paid, by a utility company, up to 41.3p/kWh for the electricity he generates
- The owner will get paid, by the utility company, an additional guaranteed 3p/kWh for the electricity he exports back to the electricity grid.
- The owner may also sell the electricity at the open market at higher price.
- Of course the owner can save himself money on his electricity bills by consuming the electricity produced by his Renewable System installed. Therefore, the owner of the RES(Renewable Energy System) will import less electricity since he will be generating a proportion of it. (currently between 6 and 13p/kWh)
- People who generate their own electricity, will not be vulnerable to rising electricity prices.
For more information on Feed-In tariffs for any of the above technologies on your potential development please call one of our consultants today on 08450091625.
