Export Tariff
In April 2010 the UK government launched the Feed In Tariff incentive which led to an increase in the number of hydropower schemes being installed in the UK. Unfortunately the Feed In Tariff scheme was closed to new hydropower projects on 31st March 2019. For new hydropower schemes you can benefit from export payments and from savings on your fuel bills.
Export payments: Any electricity you do not use on-site will be automatically exported to the grid. A national scheme has been established to pay for exported power, called the Smart Export Guarantee. To qualify for this scheme, you need to have an export meter which is capable of ‘half-hourly’ metering. If you have a smart meter installed, some companies can use the export readings from these. Rates vary between suppliers, but you should be able to secure between 5p/kWh and 15p/kWh. For larger schemes, generally above 10kW, it is possible to set up a Power Purchase Agreement with some energy suppliers. Rates for these agreements have varied dramatically during the last 18 months due to the energy crisis (6p/kWh to 70p/kWh).
On-site use of electricity: You will also benefit from on-site use of the electricity you generate. When you use this electricity you will be able to offset this against electricity, or other fuels, you would otherwise have had to buy.