The UK is committed to sourcing 15% of its energy from renewable sources by 2020, an eight-fold increase in a decade. To achieve this commitment the Government has set out a Renewable Energy Strategy which includes financial support schemes such as
the Renewables Obligation (for larger generation projects), the
Feed-in Tariff scheme (FITs) for electricity installations up to a maximum capacity of 5MW, and the new
Renewable Heat Incentive.
The Feed-in Tariff Scheme
The Feed-in Tariff scheme (FITs) pays a fixed premium for every unit of electricity generated (even if you then use this electricity) for a set period of time (25 years for solar photovoltaics (PV), 10 years for micro-combined heat and power (CHP), and 20 years for anaerobic digestion (AD), small-scale wind, and small-scale hydro). You can also get paid a set rate for any electricity you export to the grid. Plus any electricity you generate and then use yourself will reduce your need to buy electricity and hence cut your bills.
Supply companies have the main customer-facing role for the FITs scheme. They register eligible installations, process generation data, and make payments.
The Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is a new scheme designed to increase the uptake of renewable heat technologies such as ground source heat pumps.
Further information
Ofgem, the energy regulator, provides information on financial incentives. Please click
here for FITs. Please click
here for RHI. If you wish to find out more about funding for renewable energy generation, the Energy Saving Trust (EST) is a good place to start. The EST can be contacted on 0800 512 012 or click
here for their website.
The Department of Energy and Climate Change (DECC) website also contains useful information about the incentives that are available for installing renewable generation and how to pursue this through your electricity supplier. Please click
here for the DECC website.
Businesses looking for funding should contact the Carbon Trust. To find out more call 0800 085 2005 or click
here for the Trust's website.
For more information on how to install generation please click
here.