Skip to content

Feed-in energy tariffs

The Feed-in Tariff scheme (FiT) closed to new applicants (with a few exceptions) on 1 April 2019.

If you installed an eligible system with a Microgeneration Certification Scheme certificate on or before the FiT scheme deadline, you’ll continue to receive payments for your renewable energy. Find out how feed-in energy tariffs work in our helpful guide.

The Feed-in Tariff scheme (FiT) closed to new applicants (with a few exceptions) on 1 April 2019.

If you installed an eligible system with a Microgeneration Certification Scheme certificate on or before the FiT scheme deadline, you’ll continue to receive payments for your renewable energy. Find out how feed-in energy tariffs work in our helpful guide.

Written by
Sajni Shah
Utilities comparison expert
Last Updated
1 FEBRUARY 2023
4 min read
Share article

What is the Feed-in energy tariff?

The Feed-in Tariff (FiT) is a government scheme that pays homeowners and businesses to generate and export to the grid their own electricity, from renewable or low-carbon sources.

It was first introduced in 2010 to encourage the use of renewable energy and reduce the UK’s dependence on fossil fuels. The FiT closed to new applicants in April 2019. This doesn’t affect you if you are already on a FiT.

Technologies eligible for the scheme include Microgeneration Certification Scheme (MCS) certified:

  • Solar panels
  • Wind turbines
  • Micro-CHP (micro-combined heat and power).

And ROO-FIT (Renewables Obligation Order Feed-In Tariff) accredited:

  • Hydroelectric systems
  • Anaerobic digesters (these break down organic matter, like food or animal waste, to create bio-fertilizer and bio-gas).

Does the Feed-in Tariff still exist?

Yes. Even though the applications for the FiT Scheme ended back in 2019, those who are already part of the scheme will continue to receive payments as normal.

How does the Feed-in Tariff Scheme work?

Under the FiT Scheme, registered homeowners and businesses with accredited installations receive payments for the electricity they produce from participating suppliers (FiT licensees).

If you’re registered on the scheme, you’ll receive feed-in tariff payments for between 10 to 25 years depending on your technology type, capacity, and when you signed up to the scheme.

Payments are usually quarterly and are based on the meter readings you submit to your energy supplier.

If you have a smart meter, your readings will be automatically sent to your energy supplier. If you don’t have a smart meter, you’ll need to have three different electricity meters to measure the three types of energy flow: generation, import (you’ll already have this one to pay your energy bills), and export.

What are the feed-in tariff rates?

The FiT scheme has two types of payment:

1. Generation tariff 
You’ll be paid by your energy supplier for each kWh hour of electricity you produce. The rate depends on the installation date, the size and type of technology, and the overall energy efficiency of your home. Where you live is also a factor.

There are three rates for solar panels: high, middle and low. Homes with a valid Energy Performance Certificate (EPC), and an energy rating of A to D, are eligible for the highest payment rate. 
 
The table below shows the higher rates (in pence) for new installations with a total capacity of 10 kW or less in March 2019, when the scheme closed. Relevant tariffs have been adjusted for inflation by 7.5%, effective from 1 April 2022:

Standard solar PV** 4.21 
Wind turbine 9.16 
Hydro power  8.93
Combined heat and power  16.15 

**PV stands for Solar Photovoltaics - solar panel electricity systems.

2. Export tariff
This is a bonus payment for any extra electricity you generate and sell back to the National Grid. The current tariff has a set price of 5.99 pence p/kWh.

What are the benefits of the Feed-in Tariff Scheme?

There are three main perks of the FiT Scheme:

  • Get paid for selling back to your energy supplier any energy you produce and don’t use.
  • Make savings on your energy bills for the energy you do use.
  • Sense of pride for doing your bit for a cleaner environment, by helping to reduce your carbon footprint.

Why did the Feed-in Tariff Scheme end?

The FiT scheme has been extremely successful, with nearly 850,000 businesses and households having signed up by the end of March 2019. However, the falling costs of installing solar power, and the government’s desire to reallocate funds to larger projects, have led to the closure of the scheme.

What has replaced the Feed-in Tariff?

The Smart Export Guarantee (SEG) came into force on 1 January 2020. Like the FiT, this scheme provides payments for generating electricity from renewables. However, it works slightly differently, with payments set by licensees rather than Ofgem, which sets FiT payments.

Is it still worth getting renewables?

Absolutely. The Feed-in Tariff scheme may have closed, but you can investigate the Smart Export Guarantee scheme. You can also still save money on your energy bills with renewable tech like solar power and wind turbines. And don’t forget the huge reduction in your carbon footprint.

Frequently asked questions

Who is responsible for the Feed-in Tariff Scheme?

The Feed-in Tariff Scheme is a government initiative originally set up by the Department for Business, Energy and Industrial Strategy (BEIS). It is BEIS that sets the tariff rates.

The FiT scheme is run by energy regulator Ofgem, while much of the day-to-day administration is handled by the FiT licensees.

Can I claim for both FiT and Smart Export Guarantee payments?

Yes you can, but you’ll have to give up your FiT export payment, as you’ll receive that through the Smart Export Guarantee. But you can keep your FiT generation tariff as well as receiving SEG payments.

When you apply for the SEG Scheme, you’ll be asked if you currently receive FiT export payments.

What should I consider before moving to the SEG tariff?

If you move to the SEG tariff, you’ll have to give up your FiT export payments. Before you apply, there’s a couple of things to consider:

  • Unlike FiT payments, SEG tariffs vary between energy providers, although most offer 3-5 pence/kWh. If your FiT export tariff is higher, it might be worth staying on that.
  • FiT export payments are ‘deemed’, so you’re not paid for the exact amount you export. Instead, you’ll be paid for 50% of the electricity you generate. If you have a smart meter installed, you’ll be paid for the ‘actual’ amount on a SEG tariff, which could work out less than your FiT’s export tariff.

Can I add more capacity to my FiT installation?

Yes, you can increase the capacity of your installation, for example by adding more solar panels. It won’t alter your current FiT payments, but you can’t apply for additional payments for the extra capacity.

What happens if my FiT equipment is damaged?

If your FiT technology is damaged and needs repairing or replacing, contact your FiT licensee as soon as possible. They will let you know if your payments will be affected or not.

You’ll also need to contact your local MCS accredited installer to organise for repair or replacement work to be carried out.

What happens to my FiT payments if I move house?

When you sell your house, ownership of the renewable technology will usually be transferred to the new property owner. This means they’ll receive the FiT payments instead of you. When you move out, you’ll need to contact your energy supplier about the transfer of ownership.

My new home has solar panels - how can I find out if they’re registered on the FiT scheme?

To find out if solar panels on your new home are registered on the FiT scheme, you can submit an Ownership Register Query (ORQ) to the Ofgem Central FiT Register team. They should also be able to tell you which FiT licensee the solar panels are registered with.

New energy deals are available now. See if you could switch to a better deal. Compare energy