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Feed in Tariffs

How Feed In Tariffs work

Electricity is created by solar panels. Your electricity supplier pays you for each unit of electricity you generate. You can use the electricity you generate so you don’t have to import from the grid. You can export electricity back to the grid when you don’t use it and you'll be paid an export tariff.

About the scheme

Energy suppliers will pay you Feed In Tariff (FITS) payments with the 'big six' energy suppliers required by law to make these payments. Some smaller electricity suppliers may not offer FITs payments as it is not compulsory for them though many have opted to offer the payments. Go to the Ofgem website for a list of FITs-licensed suppliers.

If you are eligible to receive FITs you will benefit in three ways:

  • 1 Generation tariff - your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 25 years) and are index-linked. For a full list of generation tariffs, see FIT payment rates published by the Government.
  • 2 Export tariff - you will get a further payment from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate (so that if your solar PV system is less than 30kWp you do not need to have an export meter fitted).
  • 3 Energy bill savings - you will be making savings 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 how much of the electricity you use on site.

A typical average domestic solar electricity system returns up to 14% on investment.
See the Energy Saving Trust's Solar Energy Calculator to find out how much
you could earn.

Registering

Once your chosen installer has installed your generating technology, take these steps to register for Feed In Tariff (FIT):

  • 1 Ask your installer to register you on the central MCS database. The installer will supply a certificate of MCS compliance.
  • 2 Tell your chosen Feed In Tariff (FIT) supplier that you wish to register for the (FIT) and send them a completed application form along with the MCS certificate and the Energy Performance Certificate that shows your home has an energy efficiency rating band D or better.

Your Feed In Tariff (FIT) supplier will:

  • 1 Cross-reference your installation with the MCS database and undertake other eligibility checks.
  • 2 Confirm your eligibility and the date you are eligible for payments from.
  • 3 Add you to the Ofgem Central Feed In Tariff (FIT) Register, which records all installations in the Feed In Tariff (FIT) scheme.
  • 4 Agree with you if and when you will need to provide meter readings and when they will make Feed In Tariff (FIT) payments to you – these will form part of your statement of Feed In Tariff (FIT) terms.