FiT Feed in tariff

Feed in Tariff pay for the Solar panels

What are Feed-In Tariffs (FITs)

FITs are the payments you receive for generating and using electricity from renewable system. They were first introduced in the UK in 2010, and the older brother of RHI (which was introduced in 2011). They are governed by Ofgem (Office of Gas and Electricity Markets), and accessible to virtually any property owner, whether domestic or commercial. Unlike RHI, which paid by Ofgem with money from the Treasury, FITs are paid by energy suppliers.

FITs have two components: Generation Tariffs and Export Tariffs.

Generation Tariffs – This the main payment you receive for electricity generated by your renewable energy system. You get paid the generation tariff whether you use the electricity or feed it to the grid. The amount you get paid varies according to the system you have installed and the amount of energy it produces. As of October 2014, the generation Tariffs for Solar Photovoltaic System (e.g. Solar Panels) is set at 14.38 pence. This is reviewed regularly. It is likely to go down after the next review. However, once you’ve applied for the tariff, your payment is locked.

Export Tariffs – This is a bonus payment for electricity that you don’t use and feed into the grid. This is an incentive for you to conserve energy. Unlike generation tariff, the price is the same regardless of the system you use. It is also indexed-linked, so it goes up with the retail price index. For instance, the from the 3p/kWh original rate, the Export Tariffs have gone up to 4.77p/kWh.

At present, Feed-In Tariffs are planned to remain open to new installations until the end of March 2021. However, changes may happen in the interim.

For your system installation to be eligible for Feed-In Tariffs, it must take your property to Band D energy efficiency rating. You can find your property’s energy efficiency rating on its Energy Performance Certificate (EPC). If you bought your home after 2007, it should have a current EPC.

If you want further information about Feed-In Tariff, drop us an email or call us on 01423 876307 or 07973 663604, we will be happy to answer your questions.


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