Feed In Tariff Schemes - FITS

04-Jul-2011 The cost of energy consumption associated with the owning and operating of buildings is on the rise, but property owners should consider “Feed-in Tariff Schemes” (FITS).

The UK is required to source 15% of its energy requirements from renewable sources by 2020. The Government has therefore introduced FITS which allows individuals and businesses to invest in small scale low carbon electricity generators in return for a guaranteed payment for the electricity they generate and export.

The renewable technologies included in the scheme are wind, solar photovoltaic (solar pv), hydro and anaerobic digestion. For most property owners solar pvs are the most likely form that renewable energy generation.

Where a property is owner-occupied or where, in a multi-tenanted building, the owner has retained control of the structure, the owner will have the right to install solar pv equipment. Funding the installation of the equipment can be achieved in a number of ways. As a property owner you can pay for the cost of installation and recover the costs through FIT payments whilst reducing your own energy costs.

Alternatively you can invite an installer to pay for the cost of installation and then allow the installer to take a proportion of the cost of the FIT payments over the Scheme period (presently 20 years). Or, where your building is let you could invite the tenant to pay for the cost of the installation and allow them to retain the FIT payment attributable to the energy generated from those panels.

Under present legislation there are legal considerations for all three scenarios.

For up to date information regarding FITS and the considerations for you contact Ray Smith

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