Feed-in Tariff explained

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Whether you are more concerned about the difference you are making to your environment or the difference to your bank account, the Feed-in Tariffs are making sustainable energy measures worth your while.

What is a Feed-in Tariff?

The Feed-in Tariff is a system that encourages householders to produce renewable energy from sustainable sources by offering a monetary incentive for the amount of renewable energy you produce and either use yourself or sell back to the national energy grid. In short, the tariffs mean you are now able to not only save money but earn it too by generating your own electricity.

How does it work?

There are a couple of ways you can make money from generating your own electricity. The first is through the Generation Tariff. This is the easiest. You get paid a fixed sum per kilowat of electricity that you produce for your own use on your property. Not only are you making money but you are saving money on your usual electricity bills.

The second way to earn money is through the Export Tariff. This tariff allows you to sell the excess electricity you generate back to the national grid.

First you need to install either a wind turbine, solar panel or other approved renewable energy source. Once this is done you can call your normal electricity provider and request to be put on their Feed-in Tariff scheme. As long as your equipment is Microgeneration Certification Approved you will be accepted into the scheme.

What are the benefits for you?

1. You won’t be taxed on the income from your Feed-in Tariff scheme for any electricity   generated for your own use
2. above market payment for renewable electricity generated
3. reduced energy bills – you will only use national energy supply for any excess energy needs
4. Your payments are index linked which means when inflation occurs so your payments keep up with them
5. You get paid extra for any units of power that you don’t use and can export back to the grid
6. The amount you are paid for your contribution to the environment will offset any initial installation costs.

What are the benefits for the environment?

By using more renewable sources of energy you are saving a whole lot more than just money.

By using clean renewable sources you are reducing the negative impact of non-sustainable sources on the environment.

Can anyone take part?

To be part of the Feed-in Tariff scheme you need to have installed Microgeneration Certification Scheme (MCS) approved sustainable energy equipment. This can be using either hydro, solar or wind technology. You can also install a combined heat and power scheme to maximise your benefits.

So nowadays the choice about whether to switch to renewable energy generators is more than just being kind to the environment. Instead we are able to change our world through the incentive to make some extra cash. It truly is a win-win situation and you would be foolish not to take this opportunity now.