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Feed-in tariff details announced
Published: March 2010
The feed-in tariff (FIT) for small-scale generation of low-carbon electricity could earn householders installing solar PV £900 a year and reduce annual energy bills by £140. Small scale is up to 5 MW. Announcing the details of the scheme, which comes into effect on 1 April, Energy & Climate Change Secretary Ed Miliband also published a blueprint for a similar scheme to be introduced in April 2011 to incentivise low-carbon heating technologies. Known as the renewable heat incentive, this scheme will be a world first. Mr Miliband explains, ‘The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past. It will also change the outlook for a range of industries, in particular those in the business of producing and installing small-scale low-carbon technology.’ The scheme applies to Solar PV, microCHP, hydro and wind. Income from the FIT will be tax-free for individuals but taxed for companies. Paul Reeve, head of environment at the Electrical Contractors’ Association, comments, ‘Feed-in tariffs have done more than anything else to accelerate the installation of micro-renewable energy capacity in Europe and will play a significant part in helping the UK to achieve its renewable energy target. It’s a win-win situation; so long as the tariffs are set sufficiently high, its good for the environment’ it’s good for the consumer, and it’s good for those in the building-services sector.’ The FIT for a retro-fit PV installation up to 4 kW is 41.3 p/kWh if the customer uses the electricity directly, with a further 3 p/kWh for exporting it to the Grid. A wind generator of up to 1.5 kW has an FIT of 34.5 p/kWh. Related articles: 
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