This scheme goes under a number of names such as the FiT scheme and more, so it is worth keeping an eye out for this and other abbreviations as you learn more.
Below we have provided a handy guide to the scheme so you know exactly how you can benefit and what to expect.
What is the Feed-In Tariff?
Plainly speaking the feed-in tariff makes it possible to earn money from generating green or renewable energy.
By generating your own energy this also means you won't be so reliant on the National Grid for your energy, because you will be using natural and renewable means to provide energy for your home. You can therefore claim the clean energy cash back scheme as a result.
How Does the Feed-In Tariff Work?
This is basically a three step process. Firstly you will need to install a form of technology that is capable of giving you green energy. The most common form you'll see today would be solar panels.
Once the technology you choose is in place, it will generate renewable energy for your home. You are free to use this energy for everyday needs of all kinds, instead of using all your energy as provided by the National Grid. The tariff scheme means you will be paid for this energy, and if you need any extra you can still get it from your regular supplier just as you normally would.
If you manage to generate more power than you actually need, you can sell the remainder on to the National Grid. So this is a simple three step system that is highly beneficial to homeowners who qualify.
Can I make money from the Feed In Tariff Scheme?
Yes you can. The good news is regardless of the way you generate your energy (in accordance with the rules laid down by the tariff) you have an opportunity to earn money from the installation.
The first way to make money is actually to save it. Since you'll be generating some of the energy you need, you'll have far lower energy bills to pay. So you'll have less money going out than you would have otherwise.
However you can also make money from the solar feed in tariff. This enables you to earn money for the electricity you create, paid per unit. You'll get one higher rate for the electricity you use, and another lower rate for any surplus energy that is sold to the National Grid. The feed in tariff rates may differ depending on a number of factors, so check and see what would apply in your situation.
The big earnings come over years of having the system, so if you are intending to live in your home for years to come, you could earn thousands. This will depend on the size of the system, the amount of energy you generate and how much you sell back to the grid.
I already have solar panels. Can I join the scheme?
Some people think they've missed the boat if they have solar panels and haven't joined the scheme yet. However the good news is you can still take advantage of the scheme by joining now.
What tariff can I claim?
The tariff you claim will depend on when you had your system installed.
If you installed your solar panels or other renewable source of energy after July 2009 and by 31st January 2013, you will be eligible to receive 15.44p per unit you generate for your own use.
If you already had energy generating means available before July 2009, a lower rate will apply to your situation. However it is still worth joining.
Registering for FITS
If you want to register for the scheme you must first install the technology you want. Consider other factors too such as solar panel installation costs and how long it will take to reclaim those costs and get into profit by generating your own power.
Once you have done this, your installer will provide a certificate to confirm your new installation meets all MCS standards. You can then decide whether to apply for the scheme via your existing electricity company, or to change and apply through another one. They will arrange the payment process with you and confirm how this part of the process will work.
The reassuring thought is that your electricity company could end up paying you instead of you having to pay them. Of course it pays to be sensible with your energy usage in your home anyway.
The less you use, the more chance there is of never having to pay for energy again. If you have a reasonable size installation (it must be less than 5 megawatts though, in accordance with the tariff) you could generate all the energy you need. As you can see, there are lots of reasons why applying to benefit from this energy tariff is a very good idea indeed.
Click on the link above to view a range of MCS registered installers.
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