02 May Farewell, feed in tariff
We are fast-moving within the renewable energy sector and arguably, the FiT scheme was partly to thank for this. Renewable energy, such as solar power, is a great alternative to the UK’s reliance on fossil fuels, as they help to slow down the effects of climate change.
Essentially, the FiT offered a cost-based compensation for renewable energy producers – since it benefited the environment, and saved money in the long run – a win win?!
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What is the feed in tariff?
Introduced in 2010 by the government, the Feed in Tariff was one of the most popular government support schemes for renewable energy.
The tariff aimed to reduce the carbon intake and was designed to support the uptake of small-scale renewable and low-carbon technologies. It therefore encouraged potential consumers to invest in smart technology so that homeowners and businesses could have the opportunity to generate their own power. Any unused energy could be sold back to the grid.
Because of this, the UK has made substantial progress. By 2015, there were 730,000 eligible solar PV installations in place. However, the government had only estimated estimated 750,000 by 202o, proving that the scheme was much more effective than anticipated.
But all good things come to an end
The closure of the FiT scheme had to be pushed forward in order to deal with funding and installation prices. New applications before the closing date of 31st 2019 would not be processed. Likewise, from the 1st April, customers would not be eligible for the 20-year payment scheme.
As there was no initiative or grace period offered, renewable groups displayed concern and criticism. The closure may mean that less people would opt for renewable technology. Although, it is important to remember that solar power should be installed firstly for the benefit of the environment!
ESS are able to provide customers with solutions with regards to installing renewable energy systems following the closure of the Feed-in-Tariff. Our ‘free to fit’ offering is unique since it does not rely on government subsidies for reimbursement.
To find out more about our free-to-fit renewable energy systems send us an email.
All new solar installations will need to be subsidy-free, but you may still be eligible for the Smart Export Guarantee (SEG) reward. If you have solar panels or have a Microgeneration Certification Scheme (MCS) certificate issued by 31 March 2019, you have until the 31st March 2020 to apply to your energy supplier.
Read our previous article regarding Drax, the biggest renewable generator and how it can be beneficial: