Business Energy Feed in Tariffs (FiT)

Introduced by the government in 2010, the FIT scheme had an initial target of installing 750,000 over the next ten years, but had already reached 97% of this target by 2015. The unexpectedly quick success of the scheme, coupled with a dramatic fall in installation costs, saw its funding cut and the closure date brought forward by 12 months.

If your business had already signed up to the FIT scheme before the March 31, 2019 deadline, your payments will continue as normal up until your solar PV system is 20 years old.

If you hadn’t signed up before this deadline, you’ve now missed the cut off and won't be eligible for FIT payments. There are no plans to replace the scheme with another government-led initiative until at least 2025, but it’s worth keeping an eye for alternative schemes run by your business energy supplier.

To help your business benefit from FiT, you’ll need to ensure you meet the following requirements:

• Have equipment that can generate energy, such as solar panels or wind turbines.
• Ensure your generation capacity is no more than 5MW. One Megawatt (MW) is equal to 1,000 Kilowatts (kW).
• Get your installer and installation certified by the Microgeneration Certificate Scheme.
• Find an energy supplier with a license for Feed-in Tariffs.
• Make sure your generation address is registered with the Post Office.

On first look, this may sound a little daunting, but by doing a bit of research to work out which is the best green energy solution for your business, and talking to our business energy experts to find which of the best Feed-in Tariffs is most suitable, you could soon be profiting from your own power generation.

Once you are fully set up, you can start saving money by generating your own electricity and by selling energy back to the National Grid. But that’s not the only way to save money with a Feed-in Tariff. By speaking to our team, you can find the best deals on the market, lowering your monthly expenditure. So, not only will you generate your own energy, you’ll also be able to make money on any excess energy you create. That makes a Feed-in Tariff worth consideration, especially when you consider the long-term impact those savings can make.

To qualify for a business Feed-in Tariff, you’ll need to use equipment that can generate electricity, including:

- Solar panels

One of the easiest and quickest methods to start generating your own renewable energy, solar panels can be attached to exterior walls or the roof of your building. They cost between £5,000 and £10,000 and will have been fully repaid within six to ten years from installation. Once installed, with the right certification, you can easily compare Feed-in Tariff rates with companies like USwitchForBusiness.

- Wind power

Providing your business has enough spare land, you could drastically improve your energy spend by investing in a wind turbine. Microturbines cost around £10,000 and will take between eight and 15 years to pay for themselves. Larger turbines cost anywhere up to £3 million, meaning they’re only really a viable choice for businesses with big budgets. However, large turbines often enable you to recover your spend within just one year.

- Hydroelectric power

To generate hydroelectric power, water is passed through a submerged turbine or waterwheel. The movement created generates energy that supplies your business. Excess energy can then be sold back to energy companies. A hydroelectric power plant takes around seven years to pay back.

- Solar thermal energy

Using sunlight to heat your hot water tank, solar thermal energy is one of the cheapest methods to produce your own renewable energy. They cost between £3,000 and £5,000, which is recovered within around five years. Once you have recovered your expenditure, you’ll see a real impact on your energy spend – especially if you use a company like USwitchForBusiness to find the best energy company for FiT rates.

Other renewable energy sources which qualify for the best FiT tariffs include combined heat and power systems, biomass systems, anaerobic digestion, geothermal and ground source heat pumps. Speak to one of our experts on #CAMPAIGNBUSINESSSERVICENUMBER# if you need more information.

The first priority of any business is to make sure they aren’t overspending on unnecessary services, whilst earning money where and when possible. With an FiT tariff, you are often able to do both. By producing your own energy you remove your reliance on energy sourced from the national grid, and any excess energy can be sold back to energy providers.

Investing in renewable energy generators is a long-term investment. You won’t see a huge decrease in spend straight away, but when considered over a five, ten, or even 20 year period, you can make considerable savings. This is because the equipment can initially cost a substantial amount. However, by investing, your business could attract new customers and in time, start making money on energy, rather than having to pay for it.

It’s also worth noting that the better your Energy Performance Certificate, the easier it will be to find the best FiT tariff rates. Put simply, by showing a dedication to the environment, you are able to access cheaper energy. Pairing your investment in renewable energy sources with improving energy efficiency is a sure-fire way to lower your energy bills. Energy companies like USwitchforBusiness are just a phone call away, ready to help you compare Feed-in Tariff rates quickly and easily.

Talk to uSwitchforBusiness today on #CAMPAIGNBUSINESSSERVICENUMBER# to hear how we can compare some of the best feed in tariff rates for your business. We’ll run a business electricity plan comparison and take care of all the details involved in switching, ensuring we find you the best energy company for FiT payments.

• Average business gas and electricity consumption
• Understand your business energy bill and switch to a better deal
• Business energy suppliers