Feed-In Tariffs

A feed-in tariff is a policy mechanism designed to encourage the adoption of renewable energy sources and to help accelerate the move toward grid parity (the point at which alternative means of generating electricity is at least as cheap as grid power)

FiTs typically include three key provisions:

1. guaranteed grid access
2. long-term contracts for the electricity produced
3. purchase prices that are supposedly based on the cost of renewable energy generation and move towards grid parity.

Under a feed-in tariff, eligible renewable electricity generators (which can include homeowners and businesses) are paid a premium price for any renewable electricity they produce. Typically regional or national electric grid utilities are obligated to take the electricity and pay them.

Different tariff rates are typically set for different renewable energy technologies, linked to the cost of resource development in each case. The cost-based prices therefore enable a diversity of projects (wind, solar, etc.) to be developed while investors can obtain a reasonable return on renewable energy investments.

Feed-in Tariffs in Scotland - Links

Scottish and Southern Energy Feed-in Tariff Information

SSE includes North of Scotland Hydro, Southern and SWALEC and gives the nation 18% of its electricity and 13% of its gas. It is still UK owned. Find out how to get up to 41.3p/kWh for every unit of electricity that you generate.

Energy Saving Trust guide to Feed-in Tariffs

A complete guide to the scheme, including a full explanation of who and what is eligible, a step by step guide to taking part and a 'cashback calculator'.

Feed-in Tariffs FAQ

Dozens of answers to frequently asked questions about feed-in tariffs and the renewable heat initiative.