Renewable energy is the conversation on the minds of many alike these days. Anyone can now receive grants on promoting zero or low usage of carbon electricity. The Feed in Tariff Scheme in UK is viable for businesses, households and community groups.
They can now have their own renewable energy source in their backyards. Renewable energy would include electricity generating equipment such as wind, hydro, solar photovoltaic and anaerobic digestion. These items should be limited to 5MW.
Previously, grants were not awarded to companies for any such installations. However, they can now also gain from this. Various system sizes can be put in place to maximize your return. A good example would be the wind project of a 2mW turbine’s development cost would be similar to the approval of a 100 kW turbine.
To give an indication of financial returns, tariffs are paid at the applicable rate for the year of installation. This is based on the retail price index. This would mean that in the second year you would be paid for the first year’s tariff. Anyone considering going this route, should do so now to ensure they get sufficient returns on their investment.
Another understanding on how the Feed in Tariff Scheme works is that energy suppliers make payments to businesses and households who generate their own electricity by making use of renewable resources.
There is a payment for electricity generated and there is an additional payment for any electricity that is exported to the grid. If you have the micro generation technology running, there would be a significant reduction in your monthly bill. Payments to a loan company still need to be made by you if you had to take a loan to do the installation. The payments you will receive from Feed in Tariffs will be greater than what you monthly repayment of your loan would be. That is if you took the loan over a 25-year period.