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Home > Individuals > Energy Grants and Feed-in Tariffs

Feed-In Tariffs


Why not earn some money by generating clean green energy while helping the planet?

Government grants have largely been withdrawn for the funding of installations of renewable energy. Instead there are new incentives, call feed-in tariffs, that will pay you for each unit of renewable energy that you generate. The tariffs shown in the table below will be increased annually to take account of inflation:

Tariff levels for different technologies

Technology Scale Tariff level for new installations in period (p/kWh) Tariff lifetime (years)

The tariff levels for the electricity financial incentives (pence), calculated to offer between 5-8% return on initial investment in the technology are:

Tariff levels for electricity financial incentives

    Year 1 Year 2 Year 3  
Anaerobic digestion ≤500kW 11.5 11.5 11.5 20
Anaerobic digestion >500kW 9.0 9.0 9.0 20
Hydro ≤15 kW 19.9 19.9 19.9 20
Hydro >15 - 100kW 17.8 17.8 17.8 20
Hydro >100kW - 2MW 11.0 11.0 11.0 20
Hydro >2MW - 5MW 4.5 4.5 4.5 20
MicroCHP pilot* ≤2kW* 10* 10* 10* 10*
PV ≤4kW (new build) 36.1 36.1 33.0 25
PV ≤4kW (retrofit) 41.3 41.3 37.8 25
PV >4-10kW 36.1 36.1 33.0 25
PV >10 - 100kW 31.4 31.4 28.7 25
PV >100kW - 5MW 29.3 29.3 26.8 25
PV Standalone system 29.3 29.3 26.8 25
Wind ≤1.5kW 34.5 34.5 32.6 20
Wind >1.5 - 15kW 26.7 26.7 25.5 20
Wind >15 - 100kW 24.1 24.1 23.0 20
Wind >100 - 500kW 18.8 18.8 18.8 20
Wind >500kW - 1.5MW 9.4 9.4 9.4 20
Wind >1.5MW - 5MW 4.5 4.5 4.5 20
Existing microgeneration formerly in the Renewables Obligation 9.0 9.0 9.0 to 2027

Year 1 covers the period from 1 April 2010 to 31 March 2011; year 2 from 1 April 2011 to 31 March 2012; and year 3 from 1 April 2012 to 31 March 2013.

*NB This tariff will only be available for the first 30,000 microCHP installations. The Government will carry out a review when 12,000 units have been installed.

Technology

Scale

Tariffs (pence/kWh)

Tariff lifetime (years)

Tariff levels for Renewable Heat Incentives

Small (domestic scale) installations
Solid biomass Up to 45kW 9 15
Biodiesel Up to 45kW 6.5 15
Biogas on-site combustion Up to 45kW 5.5 10
Ground source heat pumps Up to 45kW 7 23
Air source heat pumps Up to 45kW 7.5 18
Solar thermal Up to 20kW 18 20
Medium installations
Solid biomass 45kW-500kW 6.5 15
Biogas on-site combustion 45kW-200kW 5.5 10
Ground source heat pumps 45kW-350kW 5.5 20
Air source heat pumps 45kW-350kW 2 20
Solar thermal 20kW-100kW 17 20
Large installations
Solid biomass 500kW and above 1.6 -2.5 15
Ground source heat pumps 350kW and above 1.5 20
Biomethane injection All scales 4 15

The data in the tables above is correct as of 16 March 2010, but we recommend that you should take advice from a competent installer before committing to install a renewable energy system.

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