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There are a variety of different tariffs and incentives for homes and business's today to help with the cost of switching to renewable energy or that generate you an attractive investment.

feed in tariff





green energy


renewable heat incentive


Feed-in-Tariff (FIT)

The Green Deal

Renewable Heat Incentive (RHI)

The Feed-in-Tariff (FIT)

What is it?

If you install an electricity-generating technology from a renewable or low-carbon source such as solar PV or wind turbine, the government's Feed-In Tariff scheme (FIT) could mean you get money from your energy supplier.

You can be paid for the electricity you generate, even if you use it yourself, and if you are connected to the grid any surplus electricity you export to the grid. And of course you'll also save money on your electricity bill, because you'll be using your own electricity.

What systems are eligible?

Most domestic technologies (and larger systems up to 5 megawatts) qualify for the scheme, including:

Who is it for?

Broadly speaking, the FITs are for everyone, including households, landlords, businesses and even organizations such as schools and care homes.

What are the benefits?

If you are eligible to receive FITs you will benefit in three ways:

Generation tariff  - your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 25 years) and are  index-linked. For a full list of generation tariffs, see  FIT PAYMENT RATES PUBLISHED BY THE GOVERNMENT

Export tariff -  you will get a further 3.1p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate (so that if your solar PV system is less than 30kWp you do not need to have an export meter fitted)

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.

How do I get it?

To apply for FIT you need to contact your energy supplier and register your system with them. Below are a list of the main electricity companies, and how to register for FIT with them.

Supplier

Telephone

What do I do?

British Gas

0800 327 7173  

Ask for a Clean Energy Cashback Contract

EDF

0800 4047 434

Ask for a microgeneration application form

EON

0800 1831 222

Download a form HERE

Equipower / Ebico

02920 249 302

Ask for a PV microgeneration application form

Good Energy

01249 766 090

Call or fill in THIS FORM

NPower

01905 340 646

Ask for a PV microgeneration application form

OVO Energy

0800 5999 440

Ask about the FiT

Scottish Power

0845 2705 152

Ask for a PV microgeneration application form

Scottish & Southern

0292 027 3964

Ask for a PV microgeneration application form

FIT RATES
Between March 31 st 2012 to 30 th June 2012 the rate is 21p this will then fall to between 14-16p and will continue to drop every 6 months after 30 th June 2012.

FIT rates in p / kWh

<4kW

4-10kW

10-50kW

50-150kW

150-250kW

250kW-5MW

Stand alone

EPC < · Band · D


3rd - 31st March

 

21

16.8

15.2

12.9

12.9

8.9

8.9

no change

April 1st - June 30 th

 

21*

16.8*

15.2*

12.9*

12.9*

8.9*

8.9*

9.0

*Energy efficiency requirements will apply from 1 st April 2012. The above rates are for Band C and above. Band D and below will only qualify for 9p per KW.


The Green Deal (to be launched in September 2012)

What is it?

At a local level, the Green Deal will enable many households and businesses to improve the energy efficiency of their properties so less energy is consumed and less money is wasted.

It is an innovative financing mechanism which allows consumers to pay back through their energy bills. This means consumers can see the Green Deal charge alongside the reductions in energy use which generate savings on their bill. It also means that if they move out and cease to be the bill-payer at that property, the financial obligation doesn't move with them but moves to the next bill payer: the charge is only paid whilst the benefits are enjoyed. In this way, the Green Deal differs from existing lending - it is not a conventional loan since the bill-payer is not liable for the full capital cost of the measures, only the charges due whilst they are the bill-payer.


How it works?

feed in tarrif

Who is it for?

The Green deal is primarily for households, details are undecided yet though.

What are the benefits?

Consumers will be free to finance work as they wish, and some people may opt to pay for the work upfront, in whole or in part. But, uniquely, the Green Deal offers the opportunity to repay through energy bills, spreading the cost and enabling the obligation to repay to be passed on to future occupiers.

The fail safe mechanism for the consumer is that the payments will only be due if there are savings being made. The payments are deducted from the savings element of the bill and so no payments will be due if the renewable energy system is not generating any savings. 

How do I get it?

The Green Deal plan is set to be introduced in the UK around autumn of 2012. Any household wishing to be considered must first contact a Green Deal Advisor who will produce a Green Deal Report which will highlight recommended energy savings measures and a Green Deal Plan will be generated. The Green Deal Plan is then taken to a Green Deal Provider if the consumer wishes to take the matter further and the Green Deal Provider will organize Green Deal Finance of up to £6,500. The Green Deal Provider will explain how the Green Deal Finance works and how it will be repaid via energy bill savings.

The Renewable Heat Incentive (RHI)

What is it?

The objective of the Renewable Heat Incentive (RHI) scheme is to increase the proportion of heat generated from renewable sources and, by encouraging a switch from fossil fuels, contribute towards the wider carbon reduction goals. One of the most significant barriers preventing take-up is the higher costs of renewable heating technologies, compared with fossil fuel equivalents.

A renewable heating source is often deemed too expensive. The RHI will compensate for this additional cost, which will help make renewable heating an option for all.

RHI tariff support will be delivered in the form of payments made over a number of years rather than as an upfront payment. Options for financing the cost of installations will therefore be an important issue for those considering a switch to renewable heat.

Who is it for?

From 2011, all non-domestic sectors will be offered a tariff under the RHI: industrial and the commercial sector; the public sector; not-for-profit organizations and communities. For the domestic sector, the Government will also introduce Renewable Heat Premium Payments, which will subside the cost of installing qualifying renewable heating systems.

The benefits for businesses?

Certain industries have a great opportunity to benefit from the RHI. For example, some can use the by products of their business as a fuel, such as, breweries using waste from the brewing process or supermarkets using food waste to generate biogas. This will mean a reduction in the amount of organic waste going to landfill, using it instead to generate useful energy.

How do I get it?

To apply to the RHI scheme, you will first need to  create an account with Ofgem, the  UK energy regulator and administrator of the scheme. Please follow the instructions on the page to register for an account. Once this has been done, you will be able to fill out your application. CLICK HERE TO VISIT THE OFFGEM SITE

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