The Feed-in Tariff (FIT)

Encouraging the Investment and Installation of Green Technologies

On 1st April 2010 the government introduced the Feed-In Tariff scheme (FIT) to encourage the investment in 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.

Whilst the tariff rate is not what it used to be....the cost of the panels has reduced significantly and the inverter technology has improved. This means greater output for a smaller investment so Energy savings are greater. Paypack on a domestic Solar PV installation can still be less than 5 years. 

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 5.03 pence 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
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Current Feed-in Tariff Generation & Export rates to December 31st 2017

(subject to meeting Energy Efficiency criteria)

Solar PV System Size:

High Rate / pence per kWh:

10 kW or less 4.00
10kW - 50kW* 4.22
Stand alone system 0.28

 * systems above 50kW (not exceeding 250kW) are eligible for the FiT at 1.89p

Still a good investment?

Even with 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 (tax Free for home owners). 
By generating your own solar electrical energy you can future-proof yourself against your ever rising electricity bills.

The UK Government's department-for-business-energy-and-industrial-strategy (BEIS) 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).

  • Years of experience
  • Large project portfolio
  • Quality partners
  • Many happy clients

We were spending over 3000 a year on Oil and switched (to be more environmentally friendly) to an Air Source Heat Pump. We off set the cost of running the Heat Pump with Solar PV. It's early days to see how much we are saving but we are earning over 1000 a year in incentives and we are on the lower FiT rate for our Solar due to the age of the property.

Mr P October 2015