Microgeneration Feed in Tariffs (FiT)

The Microgeneration Feed-In Tariff, which began in the UK in early April 2010, guarantees to pay a fixed sum for small-scale generation of electricity using solar photovoltaic generation for a pre-arranged contract period. The rate differs for projects of different sizes.

In order to be eligible for FiT, your solar PV panels must be manufactured to MCS standards and installed by an MCS certificated installer such as Eco Energi. If you are eligible, you will benefit in 3 ways:

1. Generation tariff - a set rate paid by the energy supplier for each kWh of electricity you generate – even if you use this electricity yourself. This rate will decrease with time for new entrants to the scheme, but once you join you will continue on the same tariff for 25 years.
2. Export tariff - an additional 3p/kWh for each unit that you sell back to the electricity grid.
3. Energy bill savings - By generating your own electricity, you don't have to buy as much electricity from your energy supplier.

 The table below shows the tariff for solar PV installations completed between now and 31st March 2012. Tariffs will increase in line with the Retail Price Index. 

For example, a typical 2.2 kWp domestic solar PV system would give the following:

£770 per year from the Generation Tariff
£30 per year from the Export Tariff
£120 per year reduction in current electricity bills.

Total saving: Around £920 per year.

Notes: This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported. Source: Energy Saving Trust

Renewable Heat Incentive (RHI)

Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is designed to encourage people to reduce their environmental impact by choosing renewable energy for heating their homes and businesses.  The Government recently announced that eligible domestic installations would receive a one-off, stop-gap payment while the exact details of the scheme are finalised, ready for introduction in October of 2012.  To be eligible for the payments, your renewable heating system must be manufactured to MCS standards and installed by an MCS certified installer such as Eco Energi.

Likely levels of support for RHI Premium Payments are as follows:

Solar Thermal - £300/unit

Air Source Heat Pumps - £850/unit

Biomass boilers - £950/unit

Ground Source Heat Pumps - £1250/unit

The table below shows the level of tariffs that will be paid to the commercial sector and the lifetime of those payments.  It is widely anticipated that domestic tariffs will be more generous that those listed below:

(Note:  Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break (Tier Break=installed capacity x 1,314 peak load hours, ie kWth x 1,314)