Feed In Tariffs

Feed in Tariffs

The Feed-in Tariffs (FITs) scheme was introduced on 1 April 2010, under powers in the Energy Act 2008.

Through the use of FITs, DECC hopes to encourage deployment of additional small-scale (less than 5MW) low-carbon electricity generation, particularly by organisations, businesses, communities and individuals that have not traditionally engaged in the electricity market.

This will allow many people to invest in small-scale low-carbon electricity, in return for a guaranteed payment from an electricity supplier of their choice for the electricity they generate and use as well as a guaranteed payment for unused surplus electricity they export back to the grid.

FITs work alongside the Renewables Obligation (RO) – which is currently the primary mechanism to support deployment of large-scale renewable electricity generation – and the Renewable Heat Incentive (RHI) which, when implemented, will support generation of heat from renewable sources at all scales.

Upcoming Changes in Feed in Tariffs

The feed-in-tariff will be reduced regularly to keep track of the number of installations and falling costs. The proposals after July 1st this year are shown in the table below. Current Suppressed take up figures suggest that the drop will be to the higher value in the range.

Power Output	From 3rd November 2012
Up to 4KW	15.44p/kWh
4KW - 10KW	13.99p/kWh
10 - 50 KW	13.03p/kWh
50 - 150 KW	11.5p/kWh
150 - 250KW	11.0p/kWh
250KW - 5MW	7.1p/kWh