The Feed-in Tariff is one of the UK’s most successful green schemes. It has been running for over 10 years and provides a financial incentive to invest in clean, green energy. In this respect, it is comparable to other similar schemes in Europe. In short, it provides a system where individuals and businesses can earn renewable energy certificates. When you get your certificate, you can start earning money in various ways. Some of these include earning cash by earning income from your property or selling your certificates.
Emerging economies and developing countries
The certificates are normally issued for the energy that is generated by renewable sources. This means that your certificates could be for geothermal heat, solar power, hydroelectricity, or even for using traditional, non-renewable methods. The certificates are also issued for generating electricity from renewable sources. You can then earn an income by selling the excess electricity you generate over your tariff.
The Feed-in Tariff scheme was introduced in 1992. At the time, the government encouraged the development of small-scale, renewable energy projects. These projects included small-scale hydroelectric schemes, solar power and wind farms. In order to encourage these ventures, the government offered financial incentives. This scheme has enabled many households and companies to install new, modern systems.
In order to take advantage of Feed-in Tariffs, you must buy or lease certificates from the renewable energy supplier that is approved by the scheme. After you have received your certificate, you can either sell your certificates annually or sell them off. However, if you want to keep them, you must keep them renewable. So, you can’t sell them off unless they’re registered. This means that you’ll need to obtain an annual renewable energy assessment form from the scheme’s main agent and pay for this.
First mover benefits
If you produce more than you consume, your excess will be fed back to the national grid. So, even if your excess powers your home, you aren’t obliged to generate any electricity. You’re also not obliged to generate any renewable energy either. You can use as much electricity as you like, just as long as it’s fitted into the power system of your property. This means that you can completely de-provision your system, leaving it entirely up to local electricity suppliers to sell to your household.
Another advantage of the scheme is that there are no restrictions on how you use your certificates. For instance, you could use all the certificates you’ve received, regardless of how much energy you use. There are also no legal penalties for going over your renewable energy certificates. So, if you produce surplus electricity and you find yourself at a disadvantage because you can’t sell it, then the Feed-in Tariffs is ideal.