Countdown until the end of the Feed-in Tariff: What’s Next?
The Feed-in tariff (FIT) scheme is considered to be the most successful climate change policy introduced by the British government. It fuelled the uptake of renewable energy technologies across the UK and ensured the country met its targets for deployment of solar PV power and onshore wind energy five years early.
From 2008 to 2017, nearly 1 million installations have been registered in the UK and green energy (wind, hydro, solar and biomass) has accounted for nearly 30% of all energy generation, compared to 21% of nuclear power and 7% of coal energy generation. The scheme is set to end on March 31st of next year, so if you would like to know about the scheme, here is our quick overview:
What are the Feed-in Tariffs (FIT)?
Introduced in 2010, the feed-in tariff is a UK government programme designed to promote and accelerate the adoption of renewable and low-carbon electricity generation technologies. It offers a financial incentive for property owners across the UK who install renewable energy technology in their homes and businesses.
Under the scheme, property owners who install an eligible system like solar PV or a wind turbine receive payments on both their generation and export of the green energy they produce. If your application to participate in the scheme is successful, you are assigned a tariff and received a fixed payment for every unit of electricity your solar panels generate, based on a number of factors, such as the size of your system, the technology you installed, when your system was installed and how energy efficient your property was.
How much could you receive?
There are three ways households could benefit from FIT’s.
Generation tariff: once an application is approved, the energy supplier would start paying a household a set amount for each unit (kilowatt hour) of electricity they generated (that’s where the name “generation tariff” comes from). The tariff levels are guaranteed for a 20-year period.
Export tariff: in addition to generation tariff payments, households could also sell the surplus energy they produce back to the grid. They are paid for 50% of however much they generate, known as the deemed export tariff. This is the case unless they have an export meter, then they will be paid on a metered export tariff.
Savings on energy bills: naturally, households save on their annual energy bills because they won’t be buying as much electricity from the grid. How much they can save will depend on whether a solar battery system is installed, the amount of electricity they use and how energy-efficient their property is.
What’s next for the solar energy sector in the UK?
In future, we think that battery storage systems will take centre stage in new solar energy projects. The lack of financial incentive will shift people’s attention to consuming as much of the green energy they produce as possible and battery storage solutions like a Moixa Smart Battery will make this possible for everyone. Instead of selling the homegrown energy back to the grid and later buying it at a higher price, people will be able to store it inside the battery and use it on demand.
This also means that households with battery storage solutions will be protected from electricity price hikes predicted to be just around the corner and will likely make substantial savings on their annual energy bills. We believe that combining green energy generation with battery storage solutions will make a strong economical case for green energy projects.
To find out more about taking advantage of the FIT before the deadline for new applications contact our team of solar experts today by emailing [email protected], calling 0161 883 2374 or filling in our Request a Quote form.