Feed In Tariffs are payments made by the Energy Companies to anyone who installs a system to generate their own electricity, including Wind Turbines and Solar Photovoltaics (PV). Backed by the Government, these tariffs are aimed at increasing the amount of renewable energy produced and used in the UK. The ultimate goal is to increase the total percentage of energy that comes from renewable sources from 2% (in 2009) to at least 15% by 2020.
FITs provide a substantial financial incentive for those choosing to generate their own electricity. Certainly, reducing dependence on the grid will reduce monthly utility costs, but there are more specific bonuses to be earned through FITs.
Nearly every property owner in England, Scotland, and Wales is eligible for Feed In Tariffs including: home owners, landlords, farmers, schools, hospitals, supermarkets, shopping centres and businesses. Providing a qualifying electricity generating system is installed and registered, its owner is entitled to FITs. Furthermore, whole communities can come together and invest in a renewable energy system.
The particular type of renewable electricity generation scheme chosen will depend largely on the location. As Wind Turbines are best suited to large open spaces, one of the most popular and effective methods is a solar photovoltaic system. Most renewable electricity schemes are eligible for Feed In Tariffs, the main restriction being that the system must generate no more than 5 megawatts of electricity. This is an amount equivalent to the power needed to run a large factory. Click here to find out more.