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Feed in Tariff Explained

How does the Feed in Tariff Work

The Feed-in-Tariff is a Government Incentive Scheme that was introduced in April 2010, primarily to help subsidise the investment into renewable electricity generation from technologies such as Solar PV, Wind and Anaerobic Digestion.

The UK has set a target for the country to produce 20% of its energy from renewable sources by 2020, mainly in order to try and tackle the increasing wholesale cost of electricity.

The Feed-in-Tariff for Solar PV ensures you receive payment for every unit of electricity that is generated from a solar PV installation. This payment helps to subsidise the installation and provides a good return on investment when coupled with electricity saving and or the export and sale of electricity back to the grid.

The Feed-in-Tariff is fixed over a guaranteed, government backed 20 year period which is linked with inflation to the Retail Price Index. The Feed-in-Tariff is part of an automatic digression model whereby the rates are cut every quarter by 3.5% unless otherwise stated by The Department of Energy and Climate Change. Once your installation has been installed and registered at the current tariff rate, your system is then locked in to receive that payment for the next 20 years.

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