By Matthew Easter, SEC Industrial Battery Company
What are Feed-In Tariffs and why have they been introduced?
In the broadest sense, the UK Feed-In Tariffs (or FIT’s as they have become known) are a financial incentive being introduced by the UK government to encourage home owners and businesses to fit renewable energy systems to their properties and generate electricity on a local scale. There are a number of reasons why they have been introduced but, at the most basic level, like many other countries we urgently need to address the fact that our energy consumption requirements continue to increase, whilst in contrast our ability to generate electricity using traditional methods will decrease in the years ahead, as fossil fuel and nuclear power stations are decommissioned but not replaced. The other key objective of this scheme is to facilitate a significant increase in the amount of power we generate nationally from renewable methods, with the aim of meeting the EU target set for the UK of 15% through renewable energy by 2020.
How do the Feed-In Tariffs actually work?
From April 1st 2010, the UK Feed-In Tariff scheme will start and homeowners or commercial businesses/property owners can apply to receive money for every Kilowatt Hour (kWH) of energy generated using approved renewable energy systems that they buy and have installed on their property. There are several different types of renewable energy system included within the FIT scheme, as follows……………