What You Need to Know About the Feed-In Tariff Scheme (FITs)
The Feed-In Tariff Scheme (FITs) is a government initiative designed to increase the uptake of renewable energy in the UK. The scheme pays businesses and homeowners for generating their renewable energy, such as solar or wind power. If you are thinking about installing renewable energy technology at your premises, it is essential to understand how the FITs scheme works. This blog post will explain everything you need to know about FITs!
What Is The Purpose Of the Feed-In Tariff Scheme?
The UK government brought the Feed-In Tariff Scheme (FITs) into action in the late 2000s. Its purpose is to encourage households and businesses to generate their electricity from renewable sources, such as solar panels or wind turbines. The scheme pays those who produce their energy a set rate per unit of electricity they generate and export back to the National Grid.
How Does The Feed-In Tariff SchemeWork?
To qualify for the FITs scheme, you need to install qualifying renewable energy technology at your premises. Once your equipment is installed and registered with Ofgem, you will be paid a set rate for every unit of electricity that you generate and export back to the grid.
You will also be paid for the electricity that you use on your premises, which could result in a reduction in your utility bills. This is because you would only need to purchase as much power from the National Grid as necessary to cover any remaining demand after generating electricity yourself using renewable resources.
How Effective Is The Feed-In Tariff Scheme?
The Feed-In Tariff Scheme has been in place since 2010, and the uptake of renewable energy technology in homes across the UK is growing. Over a million households have installed solar panels on their roofs to generate power for use around their home or business premises.
Are There Any Other Benefits To The FITs Scheme?
Yes, there are some other benefits to the FITs scheme. For example:
• The electricity you generate will be tax-free, and any profits made from selling excess power back into the National Grid could also be exempt from income tax. There is no VAT payable on installation costs either.
• If your installation is undertaken by a Microgeneration Certification Scheme (MCS) accredited company, you may be eligible for Renewable Heat Incentive payments too, which can help offset any reduction in annual income resulting from installing renewable energy technology on your premises.
How to Apply For the Feed-In Tariff?
If you are interested in applying for the Feed-In Tariff, a simple process needs to be followed. First of all, you will need to determine if your installation meets the requirements by using an eligibility checker on Ofgem’s website. Once this has been completed successfully and any relevant planning permission obtained, you will need to contact an MCS accredited installer to get the ball rolling.
The installer will take care of all the necessary paperwork and installation. You will be registered with Ofgem and start receiving payments for every renewable energy unit you generate!
Who Can Apply For The Scheme?
To qualify for the FITs scheme, you must be a UK resident, either a homeowner or business owner. You need to have permission from your local authority before installing any renewable energy technology at premises not owned by yourself. If there are multiple property owners where an installation is planned, all parties will need to agree on the installation before work can begin.
Is The Feed-In Tariff Scheme Beneficial?
There is no doubt that the Feed-In Tariff scheme is beneficial. Not only will you be able to generate your renewable energy and save money on your utility bills in the process, but you could also see a return on investment from generating and selling excess power back into the National Grid. It’s worth considering if you want to reduce your carbon footprint!
Can I Change My Feed-in Tariff Supplier?
Yes, you can change your Feed-in Tariff supplier if you are not happy with the service you are currently receiving. However, it is essential to note that this can only be done once every few months, and you must ensure that you remain within the same banding category as when you first joined the scheme. Don’t change your energy company that frequently.
What Happens If I Move Home?
You can transfer your Feed-in Tariff to a new home if you move house. This is not something you should worry about too much as there will be no interruption in payments or any changes made by Ofgem while this takes place. Just make sure when switching over from one property to another that the installation is registered under the same property owner’s name.
Find out more about prepaid energy meters here.
Other useful links about Business Energy
How to Find the VAT on a Business Energy Bill
Microbusiness Energy Prices
Compare Large & Industrial Energy Prices
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