While the RO was designed to support large renewable generation, the Feed in Tariff (“FiT”) is a government subsidy scheme introduced in 2010 to support small-scale renewable generation in businesses and homes. It provides a tax-free index-linked payment for every kWh of energy produced for a 20 year period (25 years for installations that signed up before August 2012), with different rates for different technologies.
This lesson describes the Feed-in-Tariff regime in GB and the way in which it is funded by licenced suppliers.