Solar energy is one of the cleanest forms of energy. People across the globe are getting more environmentally conscious and opting to use renewable energy sources instead of traditional forms of electricity. It benefits them in many ways.
While solar energy helps reduce your carbon footprint, it is also financially lucrative for households and businesses. The government and commercial energy suppliers have recognized the use of solar panels in households, and they reward people monetarily in the form of feed in tariffs.
This acknowledgement serves as an incentive for people to switch to solar panels too. People save money on energy bills and contribute to the planet’s welfare by using renewable energy sources like solar panels and wind turbines.
If you are new to this, you might have difficulty understanding the Feed in tariff regarding solar energy. Continue reading to find out more about this incentive most solar energy consumers are eligible for!
What is FIT or Feed in Tariff?
Feed in tariff is essentially getting paid for using renewable sources of energy. Tariffs are paid to individuals or businesses that take the initiative to use solar energy in their homes or complexes. This method of electricity generation takes the load off the grid, making it a cleaner and more environmentally conscious option.
The FIT scheme was first launched over a decade ago in April 2010. Under this scheme, different forms of payments are made to people just for using sustainable energy sources. The scheme has served as motivation for customers to get solar panel systems installed in their homes.
Here are a few additional payments made to people who opt for solar, hydro, or wind energy.
- Generation Tariff: Generation tariff is the amount of money paid to users per kWh electricity they produce using solar panels. These payments are made even if people use the generated electricity for their personal use.
- Export Tariff: An export tariff is rewarded to people who give surplus electricity to the grid to help take the load off. The amount given to people is fixed, and they are paid per kWh electricity they end up supplying to the system.
Apart from this, people also save money on their electricity bill payments depending on the amount of electricity they generate. Additionally, you can factor in the total cost of the panels, their installation, along with maintenance costs at first and then estimate how long it will take to make this money back!
Feed in tariffs mentioned above can be sanctioned by people who are eligible to hand them out. Since April 2010, the FIT scheme has encouraged many people to join the program as its official licensees. These people generally work as energy suppliers and have access to data regarding solar energy numbers.
Licensed energy suppliers or any other official organization can further oversee the distribution of the FIT scheme. The more licensees join the program, the larger will be its reach.
Who can benefit from the Feed in tariff (FIT) scheme?
The feed in tariff scheme was introduced to encourage people to start using renewable sources of energy. Tariff payments are made depending on the amount of electricity you generate using alternate means apart from the grid’s energy. The government has launched a list of things that make you eligible for the scheme.
People who possess the following sources can apply to get compensated under the feed in tariff (FIT) program.
- Solar panels or solar PV(roof-mounted or stand-alone)
- Wind turbines (building mounted or free-standing)
- Anaerobic digesters for anaerobic digestion
- Micro combined heat and power (CHP)
When you compare the installation charges of solar panels to wind or hydroelectricity generation plants, you realize how cost-effective this option is. With solar energy, you can account for installations, maintenance, technical support, etc., and still get returns faster than you could potentially imagine.
Anaerobic digestion and micro CHP are two energy generation technologies that have been around for years but are not very commonly seen in small households. Over the last 20 years, the FIT scheme has more popularized solar PV in households because of its installation costs and generation capacity!
How to be a part of the scheme?
Getting yourself a solar panel is not enough if you want to be compensated for using solar energy in the form of electricity at home. Here are a few additional measures you need to take to be eligible for the FIT scheme. Additionally, when it comes to solar energy, you could pick between solar PV and non-PV.b
- The post office needs to have your address registered and recognized.
- Total generation needs to be less than 5MW.
- All solar panel installers need to have the necessary certification from the Microgeneration Certification Scheme (MCS) at installation. In the case of hydro or wind energy setups, you will need to reach out to ROO-FIT.
- You need to acquire an MCS certificate from the installer once he registers your solar panel set up on the central MCS database after installation.
Getting an MCS certificate from a licensed provider is the best way to ensure eligibility for this scheme. The process might seem tedious, but you should have no trouble making the most of these services if you follow the steps right.
You will be eligible for feed in tariff or FIT scheme (or ROO-FIT) after you are registered on the Ofgem Central FIT Register by an official licensee. Once you register on the platform and your energy supplier recognizes you will be eligible for the payments from the government.
The process, however, is not that easy. Upon your Ofgem registration, you need to provide the licensee with the MCS certification you possess, along with an image of your meter reading. This meter reading needs to be taken on the day you submit your application.
Further, you also need to attach your setup invoice and add proof of ownership to complete the application and carry on with the process with Ofgem. After proper evaluation of your solar panel setup-, an eligibility date will be agreed on before you benefit from the FIT payments.
After evaluation, you will receive an Energy Performance Certificate (EPC). If your rating is below a D, you will not receive the standard payment per kWh from the licensee. Once you are registered and eligible for the feed in tariff or FIT scheme, you will receive monetary benefits or support from the date you submitted your meter reading.
What is the feed in tariff for solar-powered electricity production?
The licensees will assess renewable energy, and you will receive an EPC grade. The amount for tariff you get under the feed in tariff or FIT scheme depends on this grade. However, once you are eligible for this scheme, you will receive your monetary award for the next 20 years.
Here’s what you can expect to be rewarded under the feed in tariff or FIT scheme for generating solar energy and taking the load off the grid system. These include generation and export rates.
Generation tariff rates for solar setups- that generate power for households and commercial complexes.
|Technology Type||Installation Type||Minimum Capacity (kW)||Maximum Capacity (kW)||Energy efficiency Requirement Rating||Tariff||Start Date|
Meters are set up for a more accurate measure of the readings in systems that have a capacity of more than 30 kWh. You can reach out to your energy supplier and take their advice to learn more about your system meter and the amount of power you generate.
To conclude with
While saving money on electricity bills is exciting, making cash while powering your house is a whole different ball game. Customers who generated excess solar energy were certainly at a bigger advantage. Under the FIT scheme, customers can benefit from solar technologies in more ways than they imagined.
You can make the most of your installations by contacting your energy supplier today and learning more about FIT and its countless benefits!