Feed-In-Tariff

From 1 of April 2010, energy suppliers will be required to pay schools that generate their own electricity from low carbon or renewable sources, known as the Feed in Tariff (FiT). The tariff covers technologies such as solar electricity generation and anaerobic digestion.

Installing renewable energy technology on your school building is now a fantastic investment; as well offering protection against rising electricity prices it can help you reduce your carbon footprint and save money on your utility bills.

Your school will benefit financially in 3 ways if you participate:

  • Generation Tariff - Provides a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate (see Ofgem's Feed in Tariff payment rate table for details of p/kWh depending the type of micro-generation technology you install).
  • Export Tariff - If you decide to export the electricity you produce back to the grid, you will receive a further 3.2p/kWh you export. This rate remains the same for all technologies.
  • Energy Bill Savings - If you consume the electricity you produce, you will see significant reductions on your energy bills

For more information on the Feed in Tariff, see the Energy Saving Trust website

Here’s an example based on a typical size (4 kWp) school solar system on a south-facing roof in the UK, as demonstrated on the Solar4Schools website*:

  • Cost: £16,000
  • Electricity Generated per annum: 3400 kWh
  • Generation Tariff Income (assuming 75% consumed): £1400
  • Export Tariff (assuming 25% exported): £25
  • Money Saved on Electricity Bills: £331
  • Total Saved: £1756 per year

*Assumes currently paying 13p/kWh on electricity bills.

Renewable Heat Incentive (RHI)

Like the Feed-in-Tariff, the Renewable Heat Incentive will also pay those who use renewable technology to generate heat. How much you will be paid depends upon how much heat you produce. This will only be applicable to technologies installed after 15th July 2009. A table of generation tariffs for non-domestic buildings is available. It shows that you can earn 8.5 p/kWh for heat generated from solar thermal installations.

See the Department for Energy and Climate Change RHI web pages for more information, including the RHI Premium Payment which offers a one off grant towards heat generating technologies in exchange for information about the system.