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The Feed-in Tariff (FIT) - How it Works

Encouraging the investment and installation of Green Technologies

On 1st April 2010 the government introduced the Feed-In Tariffs scheme (FIT) to encourage the investment and installation of Green Technologies.

If you install an electricity - generating technology from a renewable or low carbon source such as solar PV the UK Governments Feed In Tariffs scheme mean that you can earn money from your energy supplier as well as generate your own electricity.

You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And you will save money on your electricity bill because you'll be using your own electricity


The Feed-In Tariffs scheme provides three benefits:

  • Generation Tariff - A set rate is paid by the energy supplier for each unit (or kWh) of electricity you generate. Once you join the scheme you will continue on the same tariff for 20 years in the case of solar photovoltaic installations (indexed against the Retail Price Index RPI).
  • Export Tariff - You will receive a further 4.91pence p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site (also indexed against the Retail Price Index RP.
  • Energy Bill Savings -  You will be making savings on your electricity bills because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier.

The amount you save will vary depending on how much of the electricity you use on site.

 Solar PV System Size: High Rate / pence per kWh:

Installation Date:

4kW or less (Retrofit)



After 1st April 2017
4kW or less (New build)  4.04   After 1st April 2017
4kW - 10kW   4.04   After 1st April 2017
10kW - 50kW*  4.25   After 1st April 2017
Stand alone system  0.52


After 1st April 2017

 * systems above 50kW (not exceeding 250kW) are eligible for the FiT at 2.15p

Still a good investment?

Even with the recent Feed-in-Tariff changes installing solar panels is still a viable investment with potential returns of up to 5%

The Tariff changes have actually had a positive knock on effect by making the cost of the equipment fall sharply and with the viability of battery storage improving independence from the grid and energy bills is achievable.

PV Solar Panels are still a great deal, and a great investment, providing self-generated clean energy and a second income. 
By generating your own solar electrical energy you can future-proof yourself against your ever rising electricity bills.

As prices continue to increase, your savings will get bigger and bigger. Plus you pay NO tax!. Income for domestic properties generating electricity mainly for their own use will not be classed as taxable income for the purposes of income tax.


The UK Government's Department for Energy and Climate Change (DECC) makes key decisions on FIT's in terms of government policy. The energy regulator Ofgem administers the scheme. To qualify for the scheme the installer and the products you use must be certified under the Microgeneration Certification Scheme (MCS) - see our Accreditations page for details.

The tariffs you receive for Solar PV electricity depend on both the eligibility date and your properties Energy Performance Certificate (EPC) rating which now has to be a D or above prior to any Solar install.

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