The Feed-in Tariff Scheme

The Feed-in Tariff scheme (FITs) is a scheme run by the government that pays people who produce their own electricity. It has been running since 1st April 2010 and is the main incentive to encourage people to produce electricity with technologies such as solar panels.

The government will pay you for each unit of electricity you generate, even if you use it yourself. You’re paid a generation tariff and an export tariff for the electricity you sell back to the grid.

The payments from the Feed-in Tariff are tax-free, rise with inflation and are guaranteed for the next 20 years.

How it works

You get a set amount of money for each kilowatt hour (kWh) of electricity you generate. Since January, the rates have been subject to a default degression every 3 months. The amount you will be paid depend on a few factors:

  • The size of your solar panel system
  • When your system was installed
  • Who installed your system – it must be put in place by a MCS-certified installer

How much you will receive

If you register your installation between 1st April and 30th June 2016, you will receive 4.32p/kWh if you have a system less than 10 kW (most domestic solar panel systems will be less than this).

You can sell extra units of electricity back to the grid. This falls under the export tariff and you will be paid 4.85p/kWh.

How much will I earn over 20 years?

The exact amount you can earn depends on where you live, as different parts of the UK get varying amount of sunlight. Check the Energy Saving Trust website for an accurate estimate.