Feed-in Tariff (FIT) UK – Information for Renewable Energy Generators

The UK’s Feed-in Tariff is a financial incentive scheme, which was introduced in the Spring of 2010 and is aimed at encouraging the development of small renewable energy generators.

The scheme offers a fixed payment subsidy per kWh, varying according to technology, with a proposed minimum of 5p per kWh of energy exported to the Grid. Suppliers will be obligated to buy energy from these small renewable energy generators at above-average price with the additional costs spread over consumers’ bills.
Technologies due included in the scheme are:

•   wind
•   solar PV
•   hydro
•   anaerobic digestion
•   biomass combined heat and power (CHP)
•   non-renewable micro CHP.

The initial subsidy will be paid for a period of 20 years (25 years in the case of solar PV projects), offering a return of between five and eight percent on investment.
Under the proposals renewable energy projects up to 5MW, installed after April 2010 will be eligible for the subsidy.

Existing micro-generators (less than 50kW) operating under the Renewables Obligation scheme will automatically transfer to the FIT, but subsidy will be capped at 9p/kWh.

There is no proposal for government capital grants towards the installation of FIT schemes although local authorities may offer such schemes at a local level.

References: [Please note that UK Government departments constantly change their links on a whim, so providing links is an almost impossible task!]

1   The renewables Obligation Order 2009: http://www.legislation.gov.uk/uksi/2010/678/contents/made Scotland: www.opsi.gov.uk/legislation/scotland/ssi2009/ssi_20090140_en_1 [link may have been moved]
2   Renewable Energy Strategy: www.decc.gov.uk and search
3   Renewables Obligation Certificate: www.ofgem.gov.uk and search for renewable obligation certificates
4   OFGEM: www.ofgem.gov.uk
5   Feed-in Tarrif: www.decc.gov.uk