The Feed-in-Tariff (FiT) is a Government scheme designed to promote the uptake of small-scale renewable and low-carbon electricity generation technologies, including mainly solar PV, but also anaerobic digestion, micro-hydro, wind power and co-generation.
What is happening and why?
The government will close the FIT scheme to new applicants from 1 April 2019, barring some exceptions. The scheme was introduced in 2010 but has undergone cuts of ~65% in the value of payments. This is partially due to the fact that the cost of installs has reduced, which has impacted the prospects of the solar industry and micro-generators.
Who does the scheme affect?
The FIT scheme is for anyone who has installed, one of the following technologies up to a capacity of 5MW (2kW for CHP):
- Solar photovoltaic (solar PV)
- Micro combined heat and power (CHP)
- Anaerobic digestion (AD)
What does it mean for me?
If you already receive FiT payments for existing green energy technology, you will continue to receive these for 20 years from the date you had your technology installed (10 years for CHP) or 25 years for those who first benefited from the FiT scheme and tariffs are adjusted annually by RPI.
Your obligations under your statement of FIT terms will continue for the duration of your support. This includes your obligation to inform your FIT licensee about changes including, for example, installing battery storage with your FIT installation, replacing or moving meters, replacing generating equipment, or adding capacity.
If you have submitted an application or do so on/before March 31st 2019, your application will be assessed using the existing eligibility criteria. Installations with preliminary accreditation retain their existing validity period and could benefit from an additional grace period. Your application can be processed, provided there is space for your installation in the relevant deployment cap.
There will be no changes to customers’ energy bills as the FiT charges will need to be paid for the next 20+ years to cover the cost of pre-existing generation for that period.
How Pulse can help:
For more information on the End of the Feed-In-Tariff (FiT) Scheme please contact Pulse Business Energy.
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