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Introduction to Feed-in Tariffs (NF23)

Overview

The Climate Change Act 2008 set a legally binding target to reduce greenhouse gas emissions by at least 80% by 2050. As one of a number of measures to help achieve this target, the Department of Energy and Climate Change (DECC) has used powers in the Energy Act 2008 to introduce a system of Feed-in Tariffs (FITs) to incentivise small scale low carbon electricity generation.

This guide aims to inform social landlords, housebuilders and all those who wish to understand the scheme and its implications. The content of this publication is currently under review following publication of Government consultation documents that propose changes to the tariffs.

Summary of content

The Climate Change Act 2008 includes a legally binding target of at least an 80% cut in greenhouse gas emissions by 2050, to be achieved through action in the UK and abroad, and a reduction in emissions of at least 34% by 2020. Both these targets are against a 1990 baseline.

As one of a number of measures to help achieve these targets, the Department of Energy and Climate Change (DECC) has used powers in the Energy Act 2008 to introduce a system of Feed-in Tariffs (FITs) to incentivise small-scale (less than 5 MW) low carbon electricity generation. The scheme came into effect on 1 April 2010.

This NHBC Foundation guide aims to inform social landlords, housebuilders, and all those who wish to understand the FIT scheme and its implications. It covers the eligible technologies and how the scheme works, illustrates financial returns and carbon dioxide emission savings through a number of worked examples, and identifies key issues and opportunities related to strategic implementation of Feed-in Tariffs.