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Facts you need to know about Feed-in Tariffs

20 January 2015

Facts you need to know about Feed-in Tariffs

Although you do need to cover the costs of installation of your turbine, when you apply for FIT, your payback will be significantly reduced due to the payments received through the scheme. Feed-in Tariff helps you make money in two ways:

1. Generation tariff

You receive payments for every kWh of renewable energy generated on site. The payment rate you receive is fixed, index-linked, and guaranteed for 20 years. That means that any future FIT cuts won't apply to you - you will still be paid at the rate you joined the scheme.

2. Export tariff

If your small turbine generates more energy than you need, you can sell the surplus to the grid. Energy you sell is referred to as exported energy and also receives payments under the FIT scheme. The export tariff is currently 4.77 p per kWh. It is estimated that 50% of energy you generate is sold back to the grid - you don't need a meter to measure that.

Savings on energy consumed

On top of the government payments you will, of course, still save money on electricity bills as you will need to buy less (or even no) energy from your supplier than you used to.

How to receive the payments?

The payments are made through the energy supplier of your choice. You agree with the supplier on the frequency of taking the meter readings and when to receive the payments. You are advised to contact your supplier upfront if you wish to receive payments from the FIT as not all suppliers offer that.

Who is eligible?

As long as you generate up to 5MW of renewable energy, and live in Wales, England or Scotland, you are eligible for Feed-in Tariff providing that the company installing and the wind turbine are licensed under the Microgeneration Certification Scheme (MCS). Eligible installations include wind turbines for farms, smallholdings, agri homes and businesses, schools or churches and so on.

From when do you become eligible?

The Feed-in Tariff came into force in April 2010. To be eligible, you must have installed your turbine on July 2009 or later. If your system was installed earlier, you can receive the payments only if it was registered for Renewable Obligations. The rates for systems installed before July 2009 are 9 p/kWh.

Are there any additional costs?

Apart from the initial installation cost, you may be required to purchase a two-way smart meter. Your turbine will also require annual service.

What happens when you move home?

When you move home, the ownership of the renewable energy technology is in most cases transferred to the new home owner. However, the person moving out, or the person moving in is required to notify the energy supplier on the change of ownership.

If you’d like to find out if a small wind turbine is for you, contact our team for free no obligation survey on 0)1560 486 570 or email