The majority of domestic technologies qualify for the feed in tariff meter scheme. They include: solar electricity, hydroelectricity, wind turbines, micro combined heat and power, and anaerobic digesters. The energy suppliers themselves meet the cost of the feed in tariff meter scheme payments, many of whom are required to offer this meter scheme by law. The feed in tariff meter rates available to you depend on the date on which the technology was installed and whether or not the system and the system’s installer received Microgeneration Certification.
How Feed In Tariffs Function
Electricity is created by the technology that you have installed and your electricity supplier meets the cost of each unit of electricity that you generate. You are free to use the electricity that you generate, meaning that you are not required to import electricity from the grid. Any electricity that you do not use is exported back to the grid and you are rewarded with an export feed in tariff for this through your meter. When you require additional power, you simply draw electricity from the grid.
If you are entitled to receive money under the feed in tariff meter scheme, you can benefit in three main ways:
- Your energy supplier will set a rate for each unit of electricity generated, known as a generation tariff. Once your energy generating technology has been registered with a feed in tariff meter scheme, you will be guaranteed to receive the feed in tariff meter level that you have been quoted for the tariff period (a maximum of 25 years).
- You will receive an additional 3.2p/kWh from your energy provider for each unit of electricity that you are able to export to the electricity grid, known as an export tariff. This feed in tariff meter rate is the same, regardless of the type of technology you own.
- You will also benefit from energy bill savings through a feed in tariff meter as generating your own electricity means that you are not required to use and pay for as much electricity from your provider.