Recovering Your Initial Costs

Financial returns are achieved through a procedure that is termed as a 'Renewable Obligation Order-Feed in Tariff'.

What is a Renewable Obligation Order - Feed in Tariff (ROO-FiT)?

This procedure falls under the governments Renewable Obligation order for renewable energy and is set up to compensate generators for producing renewable energy. This payment is known as a 'feed in Tariff' and is a payment per Kilowatt hour of energy produced.

How does it work?

Up to 50Kw Project Capacity (July 2011)

As from August 2011 until 31^st March 2012 applications for ‘feed in tariffs’ must be made through OFGEM using the Renewable Obligation Order – feed in tariffs (ROO-FiT ) process.

[After 31^st March 2012 this may change since the DECC is considering an alternative.]

From 50Kw to 5MW project capacity

To apply for the FiT scheme, installations will need to apply for accreditation through the ROO-FiT process via OFGEM's ‘Renewable and CHP Register’. Upon completion of this process, generators will then be required to contact a FiT supplier with their ROO-Fit details. 

The Tariff

(When the installation is approved for the FiT).

Up to 15 kW;

20.9pence per Kwh guaranteed for 20 years (linked to RPI)

Over 15kW, Up to 100kW;

18.7pence per Kwh guaranteed for 20 years (linked to RPI)

Over 100kW, up to 2MW;

11.5 pence per Kwh, guaranteed for 20 years (linked to RPI)

Additional Benefits

Resale of excess electricity (export value); 3 pence per Kwh monitored via an import/export meter.

Usage of generated electricity; a saving equal to that which would have been paid for the electricity used.

This needs to describe the financial benefits and time to recoup initial invested costs.