Feed-in tariff for schools - Smarter Business

Feed-In Tariffs – Reduce Energy Costs in Schools

Feed-in Tariffs (FIT) present an opportunity for independent schools to save on energy. With energy prices on the rise, carbon tax a reality, and pressures to become more environmentally-conscious rising, independent schools need to start thinking about sustainable measures to reduce energy consumption and costs.

Installing renewable technologies may seem cost-prohibitive for schools, but with government subsidies and schemes such as the FIT scheme, this need not be the case. In fact, renewable technology can pay for itself in less time than you may think. It will then continue to generate cost savings for your school. Schemes to incentivise renewable energy generation are well-suited to schools, which generally stay on the same site for long periods of time.

What are feed-in tariffs?

The Feed-in Tariffs (FIT) scheme is a government programme that was designed to promote the uptake of low-carbon and renewable electricity generation technologies. FITs were introduced on 1 April 2010, allowing you to get payments from your energy supplier if you generate your own electricity with wind turbines, solar panels etc. You’ll also get payments for extra units you generate.

Who can apply?

FITs are available for anyone who has installed or is planning to install renewable or low-carbon energy-generating technology (up to a capacity of 5MW, or 2kW for Combined Heat and Power – CHP).

Energy-generating technology

  • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (CHP)
  • Hydro
  • Anaerobic digestion (AD)

These communities are eligible to apply

  • Owner of a school or the person/body responsible for the management of the school.
  • Other community organisations can also apply. They’ll need to show that they are a:
    • Community Interest Company (CIC)
    • Cooperative Society
    • Community Benefit Society
    • Registered Charity
    • A subsidiary company wholly owned by a charity

How to apply for the FIT scheme

  1. Download an application template from the Ofgem website or speak to your energy supplier.
  2. Submit your application and supporting documentation to FITCommunity@ofgem.gov.uk.

How it works

By installing renewable energy technologies, your school can become a feed-in generator – the owner of the installations that apply to the FIT scheme.

  • You are responsible for selecting a FIT licensee (the energy supplier that processes the applications submitted for small installations and makes FIT payments). This can be your current energy supplier or a new one.
  • You agree FIT terms with the licensee.
  • You’ll need to provide the licensee with all the information regarding your installation.
    • Name
    • Address
    • FIT ID
    • MCS or ROO-FIT number
    • Technology type
    • Capacity
    • Billing information
    • Meter readings

If your application is successful, you’ll get a set amount for every kilowatt hour (kWh) of electricity your school generates.

What is an export tariff?

You can get an export tariff along with a generation tariff for selling any extra units you generate back to your electricity supplier. You can sell back half of the units of electricity you generate.

Last chance to apply!

In July this year, the Department of Business Energy and Industrial Strategy (BEIS) stating their intention to close the FIT scheme to new applications from 1 April 2019, bar for some exceptions.

The benefits of new energy technology

  • Renewable energy technology can be used to teach students not only about sustainability, but can also physical science principles.
  • Make a strong environmental statement   
  • Generate free electricity
  • Make money from renewable energy generation through FIT

Need help with your FIT scheme application or looking for a new energy supplier? Contact the Smarter Business team to help you save on energy.