The Generation Tariff

The generation tariff is an aspect of the recent government scheme, known as the Feed-In Tariff; an attempt to promote cleaner energy by paying property owners to create renewable energy. The initiative came into action in April 2010 and the future plans are looking to stay fairly consistent, despite the recent change in government.

The generation tariff itself is the money the government pays you, through utility companies, to create your own renewable electricity. The tariff is paid on your total output of renewable energy. The premise is simple; the more energy you produce, the more money you make. The tariff you are paid for generation varies, dependent on when your device was installed, the power of your device and what type of device it is. A full

For example wind turbines are paid a lower tariff than solar panels. Lower power devices are paid a higher rate, as higher power devices will be able to produce a far higher volume of renewable energy. Feed-In Tariff calculators can be found online for you to calculate your own individual potential earnings, in line with your own circumstances. For example, those installing a Solar PV system at less than 4 kW onto an existing property will qualify for payment of 43.3 pence per kWh.

The name ‘Feed-In Tariff’ can be initially confusing; you are not just paid for the energy you feed in to the grid, you are also paid for the renewable energy that you use.

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