Feed-In-Tariffs (FITs)

and

Renewable Heat Incentive (RHI)

What are 'Feed-in-tariffs'? 

Feed-in-tariffs (FiTs) are payments made to generators of renewable electricity. They were introduced by the Governmnet to help increase the level of renewable energy produced in the UK towards its legally binding target of 15% of total energy by 2020. The three main technologies are wind power, hydro power and solar photo-voltaic (PV). FiTs are for everyone, including households, landlords, businesses and even organisations such as schools and care homes.

How do Feed-in-tariffs help?

The scheme gives three financial benefits:

• A payment for all the electricity you produce, even if you use it yourself. A different rate is paid according to which technology is used adn the size of the scheme (bigger schemes get lower rates). Go to www.fitariffs.co.uk for details.
• Additional bonus payments for electricity you export to the grid, or 50% of the electricity you generate (3p per Unit or kWh)
• You will also have a reduction in your electricity bill, from using the energy you produce yourself.

 Are installers approved in anyway?

Yes. To qualify for FiTs you need to use a 'Micro-generation Certification Scheme' (MCS) - approved installer. Those willing to work in Lochaber are listed on this website under each of the different technologies.

What is the Renewable Heat Incentive?

The Renewable Heat Incentive (RHI) is a fixed payment for heat you genereate using renewable sources. It is similar to the FiTs but it will be opaid by the treasury not the electricity consumers. The RHI is due to come into force during summer 2011, final amounts to be paid paid are still to be announced. See www.rhincentive.co.uk for updates. MCS installers will need to be used.

What types of technologies are eligible for RHI?

The following technologies will be eligible under this scheme:

• Air source heat pumps
• Anaerobic digestion to produce biogas for heat
• Biomass heat generation and CHP
• Ground source heat pumps
• Liquid biofuels (but only when replacing oil-fired systems)
• Solar thermal heat and hot water.