Imagine trying to wean the world off fossil fuels...

The UK government has finally introduced the laws required for a feed in tariff.  This means you can get a government backed 20 or 25 year power purchase agreement for the electricity you generate on site.

Feed in Tariffs were enabled in UK legislation in November 2008 in the Energy Act. The details became law on 1st April 2010. 

What is a Feed in Tariff?

A Feed in Tariff is a long term government backed contact to buy the electricity and "carbon credits" you make onsite from solar panels, wind turbines or other renewable energy systems. Read the Introduction to Feed in Tariffs by the World Future Council. Why_feed-in_tariffs

How secure is the Feed in Tariff?

Owning a wind turbine or solar panels with a Feed in Tariff contract is like owning a commercial office and renting it to the Government on a 20/25 year lease. It doesn't get much more secure than that. The policy has cross party support.

Can the Government change the payment rates on the Feed in Tariff?

The Governement can't change the payment rates for people who are already contracted in. However, for people who haven't yet contracted in, the value of new contracts struck decreases year by year. That means there is a strong incentive to get involved early.

How much will they pay for the Feed in Tariff?

That depends on the type of technology you have and the scale of it. 

How does the Feed in Tariff work in other countries?

The Feed in Tariff system is not new. It has been enacted in Australia, Austria, Brazil, Canada, China, Cyprus, the Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Ireland, Israel, Italy, the Republic of Korea, Lithuania, Luxembourg, the Netherlands, Portugal, Singapore, Spain, Sweden, Switzerland, and in some states the United States.

Why is the Government introducing the Feed in Tariff?

They are years behind the rest of Europe on commitments to reduce carbon dioxide emissions. Feed in tariffs are the fastest way to catch up.

The Governement is also worried as the UK is going to have to decommission many power stations over the next few years, and they don't want the lights to go out. Again, Feed in Tariffs are a very quick way of getting huge amounts of electricity generation capacity depolyed.

Energy Security is also a concern as North Sea Oil and Gas reserves run down and prices rise.

What's the catch?

Do your sums carefully and double check all your assumptions. Do you have the wind or solar resource you think? How many weeks per year will your system be unavailable for maintenance?  What are the maintenance costs going to be after the warranty has expired? Do your quotes for initial costs include everything you need? Will the system be generating electricity when you need it? Done well, you could have an awesome investment. Done badly, it could be a white elephant. Choose your advisors carefully.