Wolf Passive Homes

Technology

Future Building

Feed in Tariffs

 The Feed in Tariff or FITs scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.
Once you have a microgeneration technology installed you should experience a monthly reduction in your electricity bill and then receive an income from your Feed-in tariff provider. However, if you have taken out a loan to pay for the installation you will have to make monthly repayments to your loan company.
Feed-in tariffs are designed so that the average monthly income from your installation will be significantly greater than your monthly loan repayment (with a 25 year loan).


How the FITs Scheme Works

If you are eligible to receive the FITs then you will benefit in 3 ways:

Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).

Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is the energy you do not use yourself. The export rate is the same for all technologies.
Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Domestic FIT installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out.

Feed-in-Tariff example
A twelve panel system producing 2.5 kwh peak retrofit commands a 41.3 pence feed-in-tariff  
Client pays 12 pence per watt h saving themselves £300 per year in electricity bills  
The Government will pay, by way of feed in tariff, to our client - £1032.50  
The grid supplier will pay 3 pence per watt assuming they will return half of everything they produce to the grid - £37.50

Total benefit per annum - £1370
Return on investment per year – 11.5%

A 2.2 kWp system can generate around 40% of a household's yearly electricity needs. If the system is eligible to receive the Feed In Tariff it could generate savings and income of around £900 per year.

This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.


Tariff Levels

Tariff levels, for technologies installed between 15th July 2009 and 31st March 2012 of most significance to householders using an MCS certificated product and installer

Technology

Scale

Tariff level (p/kWh)

Tariff lifetime (years)

Solar electricity (PV)

≤4 kW (retro fit)

41.3

25

Solar electricity (PV)

≤4 kW (new build)

36.1

25

Wind

≤1.5 kW

34.5

20

Wind

>1.5 - 15 kW

26.7

20

Micro CHP

≤2kW

10.0

10

Hydroelectricity

≤15 kW

19.9

20

Tariff levels vary depending on the scale of the installation. The tariff levels shown in the table above apply to installations completed from 15th July 2009 to 31st March 2012 for the lifetime of the tariff. After this date, the rates decrease each year for new entrants into the scheme. 

Will I be eligible to receive the tariff if I move into a home that already has an electricity generating technology?
FIT eligibility remains with the installation, even if the ownership of the home or generating technology changes. Therefore the technology must have been eligible before you move in, even if it is not registered yet.

What happens if I move home?
Ownership of the technology is linked to the site and, therefore, in the case where a building or homeownership changes, the ownership of the technology would also transfer to the new owner.

I rent my property. If my landlord installs an electricity generating technology, who would receive the FITs?
It will be up to landlords and tenants of domestic or commercial property to come to an arrangement about the receipt of payments and on-site electricity use benefits.

Will I need a special meter to be able to claim FITs?
Generation must be metered and FITs payments are made to generators on the basis of metered generation. Meters will need to be able to measure generation, usage and import. However, as an interim measure, DECC has announced that at the very small scale, the amount of exports for the payment of export tariffs can be deemed (estimated), subject to the following:
These arrangements will only apply until the finalising of specifications for smart meters;
These arrangements do not apply if export meters exist already, or are provided at the generator's expense

My system is not connected to the electricity grid – can I still claim the Feed-in Tariff?
Yes you will be eligible to receive a generation tariff at the tariff rate that is applicable for the type and capacity of the generating technology. You will also have to sign a declaration stating that all of the electricity generated on site will be used and not wasted.

Closure of the Low Carbon Buildings Programme to new Applications
Effective from (06.00 am) Monday 24th May 2010

Support mechanisms, in the form of a Feed-In-Tariff for renewable electricity, introduced on 1 April 2010, means that LCBP is no longer required for electrical microgeneration.
It was anticipated that support for the proposed Renewable Heat Incentive for heat under LCBP would continue up until its proposed introduction in April 2011 however demand for grants has been unprecedented and we had very little unallocated funding remaining. It has been decided that by closing the programme now, these unallocated funds will contribute towards DECC’s overall savings.
Applications that were received before the programme was closed and which are currently considered by our programme contractor BRE will also not be effected by the closure. If they pass the standard due diligence test applied to all applications they will be honoured.

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