How the Feed In Tariff Works
The feed in tariff or clean energy cash back system is designed as an incentive for the UK business and domestic users to generate renewable energy. The feed in tariff is a new legislation guaranteeing a fixed, premium rate for renewable electricity fed back into the grid. Power companies are obliged to buy the renewable electricity, through the feed in tariff.
The government is committed to reducing its carbon emissions through the adoption of renewable energy sources, particularly in regards to the generation of power in order to combat climate change. The feed in tariff is one response to this issue.
The government’s Clean Energy Cashback Scheme (feed in tariff) fixes an above market rate for utility companies to buy electricity from renewable energy producers. This means, for example, if the retail price of fossil fuel electricity were 15p per kWh, the rate for renewable electricity could be up to 60p per kWh. In this case, 45p difference per kWh would be spread across every customer of the relevant utility company.
Produce your own energy with photovoltaic systems
One way of producting your own energy and benefitting from the feed in tariff is to install photovoltaic cells in your roof. These cells are in photovoltaic panels that can harness the sun's energy and help you benefit from the feed in tariff.