Energy Funding Policies

7 years is the the annual subsidy for domestic buildings


12% is the return that the users will earn

20 years is the the annual subsidy for non-domestic buildings

Feed-in Tariffs (FIT)

A Feed-in Tariff (FIT) is a policy in place to offer long-term contracts to renewable energy producers. If you use an eligible renewable system such as wind or solar PV to generate your electricity, you could be paid a guaranteed rate for every new unit you generate through the Feed-in Tariff.

You can get payments from your current energy supplier, or you can choose a different one from the list of registered suppliers. The FIT also pays you for the electricity you don’t use, which is exported back to the grid.

You’ll get a set amount for each unit (kilowatt hour or kWh) of electricity you generate – a ‘generation tariff’. The rates vary depending on:

  • The size of your system
  • What technology you install
  • When your system was installed

You need to use a certified installer.

For you to qualify for FITs, you must be certified under the ‘Microgeneration Certification Scheme’ (MCS). The tariffs you receive depend on both the eligibility date for solar PV, your property’s Energy Performance Certificate (EPC) rating. The policy aims to increase the investment in renewable energy technologies.

Renewable Heat Incentive (RHI)

Renewable Heat Incentive (RHI) is similar to the Feed-in Tariff (FIT), as it helps businesses, public sector and non-profit organisations to meet the cost of installing renewable heat technologies. The government pays you to use renewable energy sources such as solar PV or a biomass boiler to generate heat. The money is paid through the non-domestic Renewable Heat Incentive (RHI) scheme. 

The types of heating applicable for any claims as part of the policy is as follows:

  • biomass
  • heat pumps (ground source, water source and air source)
  • deep geothermal
  • solar thermal collectors
  • biomethane and biogas
  • combined heat and power (CHP) systems

The RHI helps the UK to reduce their carbon emissions and meet their target of 20% of all energy to come from renewables by 2020, in line with the EU 2009 Renewable Energy Directive. The annual subsidy lasts for 20 years for domestic buildings and 7 years for domestic buildings.

According to the government, users will earn a return of 12% per annum.

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