The Department of Energy and Climate Change (DECC) has used powers in the Energy Act 2008 to introduce a system of feed-in tariffs to incentivise small scale (less than 5MW), low carbon electricity generation. The Department's Response to the Consultation on Feed-in Tariffs (FITs)(set out the decisions in relation to the FITs scheme.
These feed-in tariffs work alongside the Renewables Obligation (RO), which will remain the primary mechanism to incentivise deployment of large-scale renewable electricity generation, and the Renewable Heat Incentive (RHI) which will incentivise generation of heat from renewable sources at all scales. The Department launched the Renewable Heat Incentive consultation on 1 February 2010 and the deadline for responses to this was on 26 April 2010.
In this video (to the right), TV presenter Kevin McCloud talks about why he's so excited by the FIT's scheme.
When will FITs start?
The FITs scheme went live on 1 April 2010. Through the use of FITs DECC hope to encourage deployment of additional low carbon electricity generation, particularly by organisations, businesses, communities and individuals who are not traditionally engaged in the electricity market. This “clean energy cashback” will allow many people to invest in small scale low carbon electricity, in return for a guaranteed payment both for the electricity they generate and export.
Householders considering generating their own electricity should look at the Energy Saving Trust’s Clean Energy Cashback web pages for more information on energy efficiency measures as well as independent advice on the technologies concerned.
Small-scale low-carbon electricity technologies eligible for FITs are:
- Wind;
- Solar photovoltaics (PV);
- Hydro;
- Anaerobic digestion; and
- Domestic scale microCHP (with a capacity of 2kW or less)*
* Domestic scale microCHP pilot will support up to 30,000 installations with a review to start when the 12,000th installation is completed.
Solid or liquid biomass technologies continue to be supported under the Renewables Obligation (RO) at all scales.
Wind, solar PV and hydro projects of 50kW or less and microCHP projects supported through the pilot will have to use the Microgeneration Certification Scheme (MCS) in order to be confirmed of their eligibility for FITs. Any other technology and scale of project must be registered through a process based on the existing RO process, known as the ROO-FIT process. For more detail, please read The Department's Response to the Consultation on Feed-in Tariffs. Further information will be made available through Ofgem closer to the scheme launch.
Information is available for individuals, households, community groups and small business on how they will be able to benefit from the scheme. Guidance will be provided by Ofgem, and help will be available from the Carbon Trust and the Energy Saving Trust as well as through DECC.
Installations completed before 15 July 2009
Microgeneration installations (capacity of 50kW and below) installed before 15 July 2009 and accredited under the RO before 31 March 2010 will transfer to the FITs scheme at a tariff level equivalent to previous support that was available through the RO.
Non-microgeneration installations (capacity above 50kW up to and including 5MW) installed before 15 July 2009 are not eligible for FITs but will continue to be supported through the RO.
Key Feed-In Tariff scheme documents
To view all Feed-In Tariff scheme documents, including supporting documents and evidence published alongside the consultation, please view the FITs consultation response page: Consultation on Renewable Electricity Financial Incentives.
The role of Ofgem under FITs
Ofgem’s key role is in establishing and maintaining the Central FIT Register, administration of the levelisation process and the accreditation of installations which are greater than 50kW in capacity (or are of anaerobic digestion technology). Ofgem is also responsible for ensuring suppliers comply with the scheme. Ofgem’s Feed-In Tariffs website is available at: Ofgem Feed-In Tariffs.
Feed-in Tariff Case Studies