FEED IN TARIFF INCENTIVE
The UK Government has committed to supplying 20% of the country’s energy needs from renewable sources by 2020 and this figure rises to 80% by 2050. These are ambitious targets and ones that will require many years of sustained investment. Here at Boston Renewables Ltd we wish to instil in our clients the belief that both wind and solar PV are proven and reliable technologies that will provide the mainstay from which the UK will achieve its renewable energy goals.
In order to promote the use of renewable technologies the Feed In Tariff (FIT) scheme was introduced in April 2010. The FIT scheme pays micro-generators of electricity a sum of money for every unit (kWh) of electricity generated and this payment is called the Feed In Tariff. The generated power can either be used on site, thereby reducing the amount of electricity purchased by the micro-generator, or it can be diverted back into the National Grid for which the micro-generator is able to receive an Export Tariff payment.
The FIT scheme is administered by Ofgem and is subject to periodic review. However, despite the digression of FIT rates, returns on investment for wind and solar developments remain buoyant at between 12 & 20%.
For more information on FIT rates and to receive a financial appraisal of your proposed renewable energy system please contact us.