Feed in Tariffs
ROCs have been the main financial support basis for renewable energy since 2002. On 1st April 2010, FITs were introduced and represent the principal basis of financial support for generators up to 5MW. FITs applies to all schemes of <50kW. For 50kW to 5MW schemes, there is a one-off choice to elect for ROCs or FITs.
In November 2008, the Energy Bill received Royal Assent to provide financial incentives to small-scale (<5MW) renewable energy systems. The scheme provides for payments not dissimilar to ROCs for electricity and heat generated by green technologies and comes into effect on 1st April 2010 for electricity and in 2011 for heat generation. The scheme creates a significant shift in the cost/benefit of smaller scale schemes with additional income now being generated from green power generation. Feed-in-tariffs for power generation are shown below. For more information on how the system works, download our briefing sheet.
In essence there are two potential payments, one for power generation (see above) and then an optional guaranteed export tariff ie a guaranteed payment for electricity transferred into the Grid proposed to be 3p/kWh. Alternatively, generators can sell into the open market. Tariffs are to be paid for 20 years but this is extended to 25 years for PV technologies.
| Table of generation tariffs for first year of FITs (2010-11) Technology | Scale | Proposed Initial Tariff (p/kWh) | ||
|---|---|---|---|---|
| 4/10 – 3/11 | 4/11 – 3/12 | 4/12 – 3/13 | ||
| Anaerobic digestion | ≤500kW | 11.5 | 11.5 | 11.5 |
| Anaerobic digestion | >500kW | 9.0 | 9.0 | 9.0 |
| Hydro | ≤15kW | 19.9 | 19.9 | 19.9 |
| Hydro | >15kW – 100kW | 17.8 | 17.8 | 17.8 |
| Hydro | >100kW – 2MW | 11.0 | 11.0 | 11.0 |
| Hydro | >2MW – 5MW | 4.5 | 4.5 | 4.5 |
| MicroCHP (pilot) | ≤2kW | 10.0 | 10.0 | 10.0 |
| PV | ≤4kW (new build) | 36.1 | 36.1 | 33.0 |
| PV | ≤4kW (retrofit) | 41.3 | 41.3 | 37.8 |
| PV | >4kW – 10kW | 36.1 | 36.1 | 33.0 |
| PV | >10kW – 100kW | 31.4 | 31.4 | 28.7 |
| PV | >100kW – 5MW | 29.3 | 29.3 | 26.8 |
| PV | Stand alone system | 29.3 | 29.3 | 36.8 |
| Wind | ≤1.5kW | 34.5 | 34.5 | 32.6 |
| Wind | >1.5kW – 15kW | 26.7 | 26.7 | 25.5 |
| Wind | >15kW – 100kW | 24.1 | 24.1 | 23.0 |
| Wind | >100kW – 500kW | 18.8 | 18.8 | 18.8 |
| Wind | >500kW – 1.5MW | 9.4 | 9.4 | 9.4 |
| Wind | >1.5MW – 5MW | 4.5 | 4.5 | 4.5 |
| Existing microgenerators transferred from RO | 9.0 | 9.0 | 9.0 | |