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Payments for generated energy

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 - FITs
Information from Ofgem about the Feed-in Tariff Scheme.

Ofgem - RHI
Information from Ofgem about the Renewable Heat Incentive.

Energy Saving Trust
Information about funding for renewable energy generation.

The Department of Energy and Climate Change
Information about the incentives that are available for installing renewable generation and how to pursue this through your electricity provider.

The Carbon Trust
Businesses looking for funding should contact the Carbon Trust.