With the increasing threat of global warming, more and more people are turning to green energy solutions to provide their energy. Businesses are also joining in this green movement. A growing trend when starting to compare business energy is looking to switch to energy suppliers who produce their energy through green means. This includes solar panels, wind turbines, tidal energy and geothermal energy.
Yet as a business owner, what could be better than making money from your energy supplier? When your business has a type of renewable energy system installed then you can actually make money by selling the energy these systems create back to the National Grid for a profit. This is great for your business, earning you profit while also making a positive impact on the world and society around you.
What are feed-in tariffs?
'Feed-in tariffs' is the name given to these government schemes which allow businesses to sell the green energy their renewable systems make back to the National Grid. The UK government set up the feed-in tariff subsidy to encourage business owners to generate renewable energy that the National Grid can harness in a clean, sustainable manner. The National Grid can then send this energy out to households across the UK, ensuring that no damage is done to the environment while still providing power and energy. This also allows the UK to no longer need to use energy from abroad, as well as having to use fossil fuels to create energy. This has become a priority in recent years ever since the introduction of the Paris Accords in 2016 which acted as an agreement with countries all over the world where they would attempt to slowly rely less on dangerous and harmful fossil fuels.
There are two different types of schemes under the feed-in tariff subsidiary scheme.
Generation Tariff- This is the most common tariff that the majority of green energy businesses use. It means that the business will be paid for every kWh of electricity they generate, regardless if they use it themselves or not.
Export Tariff- This type of feed-in tariff allows the business to use the electricity they generate then automatically sell the surplus back to the National Grid.
The feed-in tariff scheme allows business owners to earn money while still benefitting the planet. It was hugely successful, with many different businesses and households all signing up and installing several different forms of renewable energy systems. Yet despite this, the government took the decision to bring an end to the scheme, giving businesses up until March of 2019 to apply for the scheme. However, there is good news. If your business already has an eligible renewable system installed, then you have up until March 31st 2020 to apply for entry into the scheme.
What are the benefits to your business?
You may find yourself asking the question, 'how will applying to the feed-in tariff scheme help me and my business?'. To answer that question, there are many numerous benefits to your business.
One of the most obvious benefits is the monetary reward the feed-in tariff scheme brings. Current market estimates suggest that energy prices sit at between 11-15p per kWh. Yet the cost of producing your own energy is only 5p per kWh. This means that not only will you be making a significant saving of 10p per kWh, but you will also earn money on top of this!
A second benefit to business owners is that it's a great investment. Experts have been quoted as saying that energy prices are set to double over the next few years, meaning consumers are about to witness a hefty increase in their energy bill. By producing your own electrical supply, your business will avoid having to pay an external company for the privilege of using their electrical supply. This is a great investment and will likely save you and your business a lot of money.
What is the best company for feed-in tariffs?
So now that you have decided to apply to the feed-in tariff scheme, how do you know which energy company is best for feed-in tariff payments? Almost every green energy company offers a feed-in tariff payment option, but there are several different ways to help you decide which is the best option for you.
The most important thing to keep in mind is to do your research and find out what the different variations offer and how these compare to each other. You can either do this by individually comparing them or by using a partner company such as Amvia, who will ensure you achieve the best deal for both you and your business.
The feed-in tariff scheme is a great option available to business owners. However, keep in mind that this scheme is now only open to business owners who already have renewable systems already installed.