Who actually pays the FIT?

[danny-solar]

I was told from Southern Electric today that all energy suppliers depending on size have to hand over money to a central money pot to be able to pay customers the FIT.  I presumed they knew what they were on about but it got me thinking (again).
With the Government grant ending on 31st March 2010 am i correct in suggesting that the Government in no way at all is funding the renewable energy or Solar PV in question.

Please enlighten me someone.

Thanks

 

[Ted]

SE are right. Each electricity customer will have to pay a small extra amount on each bill to their supplier which will be passed into a central account (a process called levelisation).  This amount will then be distributed back to the suppliers for them to pay to each FITs customer based on the kWh they have generated.

None of this will be financed by central government - other than indirectly to facilitate various parts of the mechanism via OFGEM, Gemserv, etc.

[danny-solar]

Totally answered my question - thanks.  Seems strange how the government wants the public to move forward on Renewable energy but wont be funding anything to incourage the general public on having any renewable source installed.  I know the FITs are being introduced but this is not contributed by the Government.  

[Patrick123]

Seems strange how the government wants the public to move forward on Renewable energy but wont be funding anything to incourage the general public on having any renewable source installed.  I know the FITs are being introduced but this is not contributed by the Government.   

instead of: GeneralPublic -> funding the government (Taxes) -> funding renewable energy
you get :  General Public -> funding FIT's to stimulate renewable energy

works fine by me, + applies the principle 'the polluter pays'

The government = the general public (or should be...)

[Paulh_Boats]

SE are right. Each electricity customer will have to pay a small extra amount on each bill to their supplier which will be passed into a central account (a process called levelisation).  This amount will then be distributed back to the suppliers for them to pay to each FITs customer based on the kWh they have generated.

None of this will be financed by central government - other than indirectly to facilitate various parts of the mechanism via OFGEM, Gemserv, etc.

I wonder what will happen to my nPower juice account - 100% offshore wind power?   I predict a riot signing up for green electricity if it is rightfully exempt from the "dirty tax".

-Paul