What is a feed in tariff?

A feed-in tariff is a renewable energy law that obliges energy suppliers to buy electricity produced from renewable resources at a fixed price and over a fixed period. These legal guarantees ensure investment security, and the support of all viable renewable energy technologies. Supporters state that the feed-in tariff, if implemented effectively around the world, would greatly assist the energy revolution that is so desperately required; through CO2 reduction and improved energy security.

How much is the generation tariff?

The generation element depend on the type of energy used and the capacity of the system. To date it is currently 41.3p per kWh for retrofit.

What is the 'capacity' of the system?

In principle it is the rated maximum output of the renewable energy generator.

How much is the export tariff?

The level will be set by the government (current proposal is 5p/kWhr), though generators will have the opportunity to negotiate a better rate with their supplier if they so choose. This element will be the same whatever type of renewable energy is used.

How long are the tariffs paid for?

They last 20 years for most renewable systems (but 25 years for solar systems).

Is the tariff fixed for this whole period?

Yes - once you start at a given tariff, it is guaranteed for the full period shown above. As shown in the last column of the table, some tariffs will be adjusted each year as costs come down, but the changes only apply to new systems (see the question on 'degression' here).

What if I have more than one system?

Each type of renewable energy will be considered (and metered) separately, because the generation tariffs are different for different types. The export tariff is the same for all.

Who pays whom?

The electricity supplier pays the Feed-in Tariffs (and bills users for the electricity imported in the normal way). Suppliers may choose to 'net these amounts off' and just pay a cheque or submit a bill for the difference. Claimants can appoint an agent to collect the tariffs on their behalf.

When are payments made?

Generally they should be quarterly to coincide with electricity bills.

How is the electricity measured?

Meters will be needed to measure each of the three energy flows (generation, import and export). You will already have an import meter, and the others may be similar - though the whole country is changing over to Smart Meters in the next few years, and they will be able to cope with all this.

What if this all sounds too difficult??

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