This guidance is not intended to be a definitive technical or legal guide to the FIT scheme.
Government aims to increase the contribution renewable energy will make to energy supplies in the UK, with renewable energy playing a key role in the wider climate change programme.
The FIT scheme is intended to encourage the uptake of small scale renewable and low-carbon technologies up to a total installed capacity (TIC) of 5MW located in England, Wales and Scotland. The FIT scheme creates an obligation for certain Licensed Electricity Suppliers to make tariff payments for the generation and export of renewable and low carbon electricity. Installations using solar photovoltaic (PV), wind, hydro, anaerobic digestion (AD) technologies up to 5MW and fossil fuel derived Combined Heat and Power (CHP) up to 2kW (up to a maximum of 30,000 eligible installations)
This scheme replaces the Renewables Obligation (RO) as the main mechanism of support for PV, wind and hydro installations with a declared net capacity (DNC) of 50kW or less ('micro installations')
A FIT scheme was not introduced in Northern Ireland. Instead, additional incentives were put into place via a change to the Northern Ireland Renewables Obligation (NIRO) Order for generating stations of certain technologies and installed capacities.
The FIT scheme was introduced by the Department of Energy and Climate Change (DECC) in April 2010 and is administered by the Gas and Electricity Markets Authority (the Authority), whose day to day functions are performed by Ofgem.