New Feed in Tariff Rates from April 2010 to March 2012

New feed-in tariff rates come into force from 1st April 2010, which enable you to receive a payment and sell electricity back to the National Grid from renewable energy sources.

What are Feed-in Tariffs?

The term feed-in tariff means a rate payable to you by the government via your energy company for electricity you produce from renewable sources such as solar power or wind turbines. It’s not just about generating electricity for others to use as you get a payment on a predetermined scale for all the following:

• You receive a payment per kWh for simply generating the electrical power whether you use it or not. This part is known as the generation tariff with fixed rates once you join the scheme. As more people join the scheme, the rates will gradually reduce for new entrants.
• Then a second payment per kWh for selling excess or all of the energy back to the National Grid. This amount is the export tariff currently payable at 3p per kWh.
• Reduced electricity bills because you have generated clean green energy.

What is Eligible for this Scheme?

Any renewable sources powered electricity generating system with a capacity of 5MW or under installed after 15th July 2009 is eligible for the scheme. The power-generating systems include solar panel PV, wind turbines, hydroelectric power, anaerobic digestion and micro combined heat and power (mCHP). It’s estimated that a home with a 2MW system could receive £700 per year from the generation tariff, a further £25 for the export tariff and around £110 savings on electricity bills from using this scheme.

You’ll need to register your systems with your energy supplier to participate in this scheme.

OK, I’m hooked – what can I do now?

From April 2010, if you want to add solar panels to your home or have a small wind turbine on your roof or back garden, here’s what you need to do:

• Check for any grants that may be available from your local council which would reduce your own cost.
• Check for any local planning permissions you may require to install your devices.
• Find a reputable company to purchase and install your system.
• To qualify for feed-in tariffs, your renewable energy source(s) must be fitted by an MCS certified installer.
• Contact your energy supplier to apply for the scheme and send in your MCS certificate.

If you don’t get your system installed by a qualified MCS company, you can still take advantage of lower fuel bills but not participate in the available feed-in tariffs.

Feed in Tariff Table

Here are the rates available for the generation tariff for various renewable energy sources that have under 5MWof total output.

• Anaerobic digestion ≤500kW 11.5p / kwh
• Anaerobic digestion >500kW 9p / kwh
• Hydro ≤15 kW 19.9p / kwh
• Hydro >15 – 100kW 17.8p / kwh
• Hydro >100kW – 2MW 11p / kwh
• Hydro >2kW – 5MW 4.5p / kwh
• Micro-CHP <2 kW 10p / kwh
• Solar PV ≤4 kW new 36.1p / kwh
• Solar PV ≤4 kW retrofit 41.3p / kwh
• Solar PV >4-10kW 36.1p / kwh
• Solar PV >10 – 100kW 31.4p / kwh
• Solar PV >100kW – 5MW 29.3p / kwh
• Solar PV Standalone 29.3p / kwh
• Wind ≤1.5kW 34.5p / kwh
• Wind >1.5 – 15kW 26.7p / kwh
• Wind >15 – 100kW 24.1p / kwh
• Wind >100 – 500kW 18.8p / kwh
• Wind >500kW – 1.5MW 9.4p / kwh
• Wind >1.5MW – 5MW 4.5p / kwh

Most tariffs are set for fixed rates for 20 years except for Micro CHP, which is for ten years, and solar PV, which is for 25 years. The above rates are also linked to the retail price index and are guaranteed for installations up to and including 31st March 2012. After this date, the feed-in tariff rates will start to reduce.