Who has FITs?

Long-term feed-in tariffs are the primary support mechanism for renewable energy generation throughout continental Europe.
European countries with long-term feed-in tariffs include Germany, France, Poland, the Czech Republic, Spain, Italy, Netherlands, Greece, Portugal, Switzerland, Bulgaria, Hungary, Latvia, Lithuania, Belgium, Slovenia and the Slovak Republic.

What are feed-in tariffs and how might they work in the UK?

Across the rest of Europe, Feed-in Tariffs (FITs) provide a long-term financial incentive for generators to invest in renewable energy. This includes small scale generators such as households, community groups and businesses, as well as large-scale renewable energy developments.
Under a FIT system, regional or national electricity companies are obligated by governments to buy renewable electricity (electricity generated from renewable sources such as solar photovoltaics, wind power, biomass, and geothermal power) at above market rates. These rates differ between the different forms of power generation, depending on the capital cost and commercial maturity of each technology.

1 February 2010 - DECC Press Release - Cash Rewards for Low Carbon Electricity and Heating Installations 

Government chemes have been announced in the UK to subsidise the installation of solar panels and wind turbines, these will come into effect as from April 2010. Ground source heat pumps will be incentivised as from April 2011 as shown below.                                 

The Department of Energy and Climate Change has published plans for a scheme to incentivise renewable heat generation at all scales. This will come into effect in April 2011 and guarantee payments for those who install technologies such as ground source heat pumps, biomass boilers and air source heat pumps. Under the proposed tariffs the installation of a ground source heat pump in an average semi-detached house with adequate insulation levels could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.

The mechanics of the scheme, i.e. how the subsidy will be calculated have yet to be exactly defined.

However, this means in effect that the government will financially reward, over the long term, those who choose to install heat pumps!

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