The Feed-in-Tariff was introduced to the UK on 1 April 2010 as an incentive to install renewable energy technologies.

The scheme requires energy suppliers to pay householders who generate their own electricity from renewable and low carbon sources, a fixed price (pence per kilowatt hour) for electricity that they produce. The fixed price will depend on the type of renewable technology installed. This is known as the Generation Tariff. You can currently earn up 15.44 p/kWh for every unit of electricity you generate.

See Ofgem's list of current Generation Tariffs for more information.

If you take part in the scheme and decide to export this electricity back to the grid rather than use it in your home, you can also receive a further payment of 4.5p/kWh. This is known as the Export Tariff. However if you use the energy you generate on-site, you will also save money on your utility bills.

The scheme covers all electricity producing technologies such as solar electricity, wind turbines, hydroelectricity, anaerobic digestion and micro combined heat and power.

For example, a typical domestic solar electricity system with an installation size of 3kWp could give a total saving of approximately £670 per year:

  • £530 a year from the Generation Tariff
  • £40 a year from the Export Tariff
  • £100 a year reduction of current electricity bills

To find out more about current tariff rates or see how much you could save, please visit the Energy Saving Trust website.

Contact Energy Saving Trust

You can contact Energy Saving Trust on 0300 123 1234 or email energy-advice@est.org.uk

Renewable Heat Incentive

Like the Feed in Tariff, the Renewable Heat Incentive (RHI) will also pay those who use renewable technology to generate heat. You will be paid depending on how much heat you produce. This will only apply to technologies installed after 15 July 2009.

Phase 1 of the RHI has already been launched for non-domestic sectors and is expected to become open to most households in 2013. If you are keen to participate before this date, why not consider taking part in the RHI Premium Payment? This pilot scheme is available to any domestic householder who has a well-insulated home, based on an energy performance certificate. In return for a one-off grant towards your renewable technology you will be required to provide feedback on its performance.

You can find out more about phase two of the RHI Premium Payment by visiting the Energy Saving Trust website.