“We are the Grid”: Great Britain’s (Clean Energy Cashback) scheme. "Fight the PowerNews" from PlanetShifter.com Networks

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“We are the Grid”: Great Britain’s Feed-in Tariff (Clean Energy Cashback) scheme

Feed-in Tariffs (FITs) became available in Great Britain from of 1st April 2010. Under this scheme energy suppliers make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity (PV) panels or wind turbines.

The 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 micro-generation technology installed you should experience a monthly reduction in your electricity bill and then receive an income from your Feed-in tariff (clean energy cash back) 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). Use the cash back calculator to see how purchase price and loan can impact on payback times

About the Scheme

The scheme covers the following electricity-generating technologies, up to an installation size of 5 Mega Watts:

• Solar electricity (PV) (roof mounted or stand alone)
  
• Wind turbine (building mounted or free standing)
  
• Hydroelectricity
  
• Anaerobic digestion
  
• Micro combined heat and power (mCHP) (limited to a pilot at this stage)

The tariffs available and the process for receiving them vary, depending on when the technology was installed, and whether the system and the installer were certificated under the MCS scheme.

You will qualify for the full FIT payments if:

The technology was installed between 15th July 2009 and 31st March 2010 and you transferred to FITs before 1st April;
OR
It is installed after 1st April 2010 using an MCS* certificated product and installer;

The Micro-generation Certification Scheme (MCS) is an independent scheme that certificates micro-generation products under 50kW and installers in accordance with consistent standards. Any commercial or larger scale systems, over 50kW, and all anaerobic digestion installations must apply directly through the Renewables Obligation Order feed-in tariff process for larger installations (ROO-FIT) process as they are not covered by the MCS.

How the scheme works

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

1. 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).

2. 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 when it isn’t used on site. The export rate is the same for all technologies.

3. 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.

Deemed export

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

Example of how the Feed-in Tariff works

As an example, a typical domestic solar electricity system, with an installation size of 2 kWp could earn around:

• £700 per year from the Generation Tariff
  
• £25 per year from the Export Tariff
  
• £110 per year reduction in current electricity bills.

This gives a total saving of around £830 per year.This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.