UK Energy Research Centre (UKERC)

Feed-in Tariffs: the energy saving option


Courtesy of Courtesy of UK Energy Research Centre (UKERC)

  • Energy saving feed-in tariffs (ESFITs) are a relatively new concept and are designed to use the same principles as Feed in Tariffs for renewable energy (REFITs)
  • They offer a promising way of improving electricity efficiency and reducing electricity demand, thereby decreasing carbon emissions
  • The Electricity Market Reform proposals which form part of the 2012 Energy Bill provide a bias towards investment in new supply that could be addressed using ESFITs
  • In the context of EMR, ESFITs offer a means of delivering decarbonisation with a lower impact on consumer bills
  • Because ESFITs do not rely on energy companies, they would provide incentives for innovation in project delivery in a much wider range of actors including householders, community groups, local authorities and small businesses
  • The concept of ESFITs is simple, but there are policy design issues that still need to be addressed

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