Combined Heat and Power Focus

DECC's Free resource supporting the development of CHP

CHP Helpline 0845 365 5153

Feed-in Tariff

The Feed-in Tariff (FiT) was introduced by the UK Government in order to support renewable electricity generating technologies installed in the UK up to 5 MWe in capacity. Currently, the only renewable fuel CHP technology supported by the FiT scheme is anaerobic digestion (excluding sewage gas). Solid biomass, sewage gas and landfill gas CHP are specifically excluded from the FiT scheme on the grounds that it is considered there is adequate support available through the RO scheme.

The FiT scheme also includes a pilot which provides support to domestic scale micro CHP installations. Micro CHP units are normally fuelled by natural gas and must have an installed capacity of 2 kWe or less. To be eligible for support from FiTs, qualifying micro CHP units must be installed and certified in accordance with the Microgeneration Certification Scheme (MCS). Any other technology and scale of project must be accredited through a process based on the existing Renewable Obligation process, known as the ROO-FIT process. Please note that the FiT micro CHP pilot will support up to 30,000 installations, with a review to start once 12,000 installations are complete.

In order to qualify for the FiT scheme, qualifying CHP generators must be connected to the grid via an import / export meter. FiTs are payable for each unit of electricity generated whether used on-site or exported to the grid. In addition to the generation tariff, any power exported to the grid is also eligible for the export tariff. The tariff rates are adjusted annually by the percentage increase or decrease in the Retail Price Index over the 12 month period ending on 31 December of the previous year. 

The following table shows current CHP technologies and tariff rates eligible for support under the FiT scheme:

TechnologyPeriodTariff rateTariff duration
Anaerobic digestion with a total installed capacity of 250 kWe or less01/04/2010 to 29/09/201112.70 p/kWhe20 years
30/09/2011 to 31/03/201314.70 p/kWhe
Anaerobic digestion with a total installed capacity greater than 250 kWe but not exceeding 500 kWe01/04/2010 to 29/09/201112.70 p/kWhe20 years
30/09/20011 to 31/03/201313.60 p/kWhe
Anaerobic digestion with a total installed capacity greater than 500 kWe but not exceeding 5,000 kWe01/04/2010 to 29/09/20119.90 p/kWhe20 years
30/09/20011 to 31/03/201312.50 p/kWhe
Gas fired micro CHP with an installed capacity of 2 kWe or lessbefore Conditional Date11.00 p/kWhe10 years
From Conditional Date12.50 p/kWhe
Export tariff (all Eligible Installations)01/04/2010 to 30/11/20123.20 p/kWhe        -
From 01/12/20124.50 p/kWhe

 

 

 

 

 

 

 

 

 

 

 

 

 

The Conditional Date referred to in the entries in the table for certain descriptions of installations applies only where the European Commission gives state aid approval on or before 31 March 2013 for the higher rate specified in the entry and in such case the conditional date is the later of (a) 1 December 2012, or (b) the date on which the approval is given. If state aid approval is not given on or before 31 March 2013, the lower rate specified in the entry applies throughout FIT Year 3.

The date from which a generator is eligible to receive payments for electricity generated and exported is known as the Eligibility Date. The payments will continue for the duration of the Eligibility Period.

 

DECC is responsible for the policy and regulation that support the FiT scheme. The scheme is administered by Licenced Electricity Suppliers and Ofgem. It is the responsibility of FiT Licenced Electricity Suppliers to support generators through the registration process, read generation and export meters and make tariff payments.

Further information can be found by clicking the following links:

 

Other Topics

 

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Next: Hydrocarbon Oil Duty Relief 

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The UK CHP Development Tool is the latest version of the map, originally developed as a tool aimed at assisting power station developers consider the opportunities for supplying heat and development of combined heat and power (CHP) as required under planning policy. However, it can also be used by both small and large organisations to help identify the locations where the supply of CHP heat would have the greatest potential, and therefore the largest positive environmental impact.

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