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"Excellent communications.  Excellent knowledge. Couldn't have asked for any better". Steve & Jill Polglase, Cornwall - Evance Iskra R9000 Small Wind Turbine


1. What is a Feed in Tariff?
2. How secure is the Feed in Tariff?
3. Who is Eligible?
4. How does the Feed in Tariff work?
5. Will the Tax Man take his cut?
6. What about Inflation?
7. Do I need to use a certified product and Installer to benefit from the tariff?
8. What if I want to install a Second Hand/Refurbished Wind Turbine?
9. Can I claim RDPE grant funding and the Feed in Tariff?
10. What happens if I move home?


1. What is a Feed in Tariff?

The UK government has introduced laws required for a feed in tariff. This means that if you install an electricity generating technology that uses renewable energy, e.g. a wind turbine, you can receive a government backed 20 year power purchase agreement for the electricity that you generate on your site. In effect it is a government contract to buy the electricity and “carbon credits” you produce on-site for the next 20 years.

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2. How secure is the Feed in Tariff?

People have often said to us “yes but, future government’s can change their minds cant they?” The answer is “yes” and “no”!

Firstly, it is not the Government who make the payment. The Government has simply passed a law which means that energy suppliers have a legal obligation to pay. Once your wind turbine is installed and you are registered for the feed in tariff then that is, in effect, a 20 year contract and it has been made clear that those already in the scheme, will be paid as per the scheme details, at the time of entry. However, future government’s can change the rules and support levels will be reviewed periodically and in response to and sudden changes in technology costs - but not for those already signed up who will continue to receive the generation tariff offered at registration for the full 20 years. Another reason for acting quickly!

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3. Who is Eligible?

The tariff is available for electricity generating technologies (e.g. solar PV and wind turbines) rated up to 5MW (5,000kW). It is available to homeowners, businesses and educational establishments in England, Wales and Scotland. Northern Ireland has yet to make a decision on the tariff.

Only installations made after 15th July 2009 are eligible.

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4. How does the Feed in Tariff work?

The scheme provides a fixed payment (initially 27.1p/kWh for the Evance Iskra R9000 and Gaia 133) from your chosen electricity supplier for every kilowatt hour (kWh) of electricity generated by your wind turbine whether you use the electricity or export it back to the national grid. You have read correctly - if you use the electricity that you generate you will be paid for it!

In addition you will be paid an extra amount (currently 3p/kWh) for the electricity that you generate and export to the National Grid making the “value” of exported electricity 30.1p/kWh.

You are currently paying around 13p/kWh for your electricity imported from the National Grid and you will naturally “save” this when using the electricity that you generate via your turbine. In effect, the “value” of electricity generated and used on-site is therefore 40.1p/kWh.

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5. Will the Tax Man take his cut?

Not if the electricity generated is for domestic purposes. Businesses will be taxed at their business rate.

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6. What about Inflation?

All the electricity that your turbine generates, and the export tariff, are linked to the Retail Price Index (RPI). This means that tariffs will rise in line with inflation, ensuring that their value does not decrease over time.

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7. Do I need to use a certified product and Installer to benefit from the tariff?

Yes. To be eligible for the feed in tariff the Microgeneration Certificate Scheme (MCS) is a requirement. Greenthinking only use MCS certified products (e.g. Transition Product 229 and Transition Product 227) and MCS certified installers (e.g. MCS 1057).

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8. What if I want to install a Second Hand/Refurbished Wind Turbine?

Second hand or refurbished installations are not eligible for the feed in tariff.

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9. Can I claim RDPE grant funding and the Feed in Tariff?

Unfortunately you will be unable to secure RDPE grant funding if you are intending to claim the Feed in Tariff. Renewable energy options have been removed from the Small Capital Grant Scheme as a result of the Feed in Tariff providing a better return on investment.
 
Where a larger scheme wishes to apply for the RDPE grant they will need to confirm that they will not be seeking to apply for the FiT payment. If an applicant has been awarded a grant and then wishes to claim FiTs then they will need to make arrangements to withdraw from the RDPE process and pay back any money awarded.

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10. What happens if I move home?

Ownership of the technology is linked to the site and, therefore, in the case where a building or homeownership changes, the ownership of the technology would also transfer to the new owner.

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