Feed in Tarrif and Renewable Heat Incentive
The Feed-In-Tariff (FIT) and The Renewable Heat Incentive (RHI) are government schemes to encourage the uptake and reward the installation of renewable energy technologies for both the domestic and commercial sector.
Feed-In-Tariff (FIT)
There are three elements to the Feed in Tariff:
The Generation Tariff – earns you a fixed income for every kWh of electricity you generate. Use this electricity on-site at no cost.
The Export Tariff: You earn an additional fixed income for every kWh hour of surplus electricity you generate and sell back to the grid.
You are still able to buy in electricity from the grid as normal for demands not met by your system.
The Feed in Tariff covers systems up to 5MW.
Renewable Heat Incentive (RHI)
As with the FIT you earn a fixed income for every kWh hour you produce. This time you will be paid for the heat produced rather than the electricity you produce. This is likely to be used in your own property, but if you are lucky enough to be connected to a heat network you could get an additional payment for 'exporting' surplus heat.
Tariffs will start to be paid in June 2011 and will last between 10-23 years depending on the heat source. Eligible technologies include solar thermal, biomass, ground source heat, air source pump, biogas (heat & injection)
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Both schemes help future-proof against rising electricity pricesand provide;
- Secure return on investment
- Energy security and hedging against rising fuel prices
Please contact Mike Woollacott, Projects Director to discuss how we can assist you. |
