Feed in Tariffs

From 1st April 2010 the UK government introduced ‘Feed in Tariffs’ (FiTs) from the Energy Act 2010.

1) Essentially, you get paid from energy suppliers for every kilowatt of renewable energy you
generate, no matter what you do with the energy. This is known as your ‘Feed in Tariff’.
2) The energy you generate is then yours to do what you want. You can use it on site or your
tenants can use it on site. If you do not use it, you can;
3) Export it back to the grid – You will be paid for this export.

You can see there are principally three financial ways to gain from renewable energy generation the
quotation below is set out in three steps, one, two and three for your ease.

Number One - The ‘Feed in Tariff’ is the guaranteed amount you will be paid by the energy supplier
– Energy suppliers want your renewable energy, FiTs helps them to meet the strict targets they have
been set by government. Do not worry about the contract with the energy supplier we will sort this
out for you. The payment they make to you is set depending on the type of technology and the size
of the system installed. We can take care of all this. The FiTs payment is now RPI linked for a period
of 20 years for wind technology and 25 years for photovoltaic technology. This is the first element of
the return on your investment in renewable energy.

Number Two - This is the monetary value of the savings that you will make in addition to the ‘Feed
in Tariff’ payment. You are currently buying this energy right? You no longer need to buy it, so you
make a saving. That’s why we asked you for the rate you currently buy energy at. This is the second
element of the return on your investment in renewable energy.

Number Three – You or your tenants may not use all of the energy you generate. They will in
operations that are 24/7. So for every kilowatt of your renewable energy you do not use, you are
paid for, by the energy supplier. Clever! You will see how we have split energy use and energy
export below. This is the third element of the return on your investment in renewable energy.

Don’t worry about how this is all calculated. This is another clever part. We know exactly who is
supplying what at any one time, who is buying what at any one time. These fantastic returns on
your capital will not give you or your tenants any administrative headaches!

The following gives an example of how your return is made up.

Imagine a site currently using 300,000kW per annum, paying 9.5p per kW.