Frequently Asked Questions
If you do not see the answer you need here, please contact us with your question and we shall do our best to answer it for you.
How easy is it to generate your own power?
Once you have your systems installed it is tremendously easy as your system will do everything automatically for you. Almost zero maintenance means they really are plug and go.
Do I have to pay tax on my Tariff income?
It was announced in the Pre-Budget Report 2009 that the income from the Feed-In Tariffs will be free of income tax for householders who install systems primarily for their own use. Similarly, it was announced in the March Budget that the Renewable Heat Incentive will also be Income Tax exempt.
Who pays for the Feed-in Tariffs?
The system is administered by the official regulator Ofgem, and uses money from a levy on all electricity sales, collected and distributed by the licensed electricity suppliers. More information on our important links page.
The scheme is policed by an Act of Parliament which obligates all energy providers (with over 50,000 customers) through their Energy Supply License to pay FIT revenues to customers who install approved systems.
Therefore if you install a renewable energy system you get a treble benefit:
- Your income from the Feed-in Tariff
- An extra income for every kWh you export
- Because you are producing some of your own power, you will buy less electricity and therefore enjoy significant cost savings (lower electricity bills)
How long would I get this tariff for?
The Feed-In Tariffs will be paid for a period of 20 years from the date the system is first registered.
Does this only apply to electricity?
The Feed-In Tariffs apply only to electricity from low carbon sources. However a similar measure is being introduced to cover renewable heat and gas. This will be called the Renewable Heat Incentive and you can see more about it on our Renewable energy technologies page.
Why are they called ‘feed-in’ tariffs?
Good question! This sort of tariff was first introduced in Germany in the 1990s and it applied only to power which was ‘fed in’ to the electricity grid. The tariffs in the UK apply to all the electricity the system produces, whether it is used on site or fed in to the grid, so it’s actually a misnomer (they should really be ‘production tariffs’).
Do the Feed-in Tariffs apply to all types of renewable energy?
The tariffs apply to many types of renewable electricity, though not all. There is a full list of all types included on our Feed-In tariff page.
What is renewable electricity?
It is power produced from a sustainable source such as solar, wind, or biomass. Electricity from fossil fuels like coal, oil and gas or from nuclear stations is not renewable.
What is the Microgeneration Certification Scheme (MCS)?
The MCS is a scheme to provide assurance to customers for domestic scale generation systems. It provides both for accreditation of installers and certification of products. For more information visit the MCS website.
It is also linked to the Renewable Energy Assurance Scheme (REAL Assurance), which provides protection against mis-selling and for other aspects of the system supply contract. For more information visit the REAL Assurance website.