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’re already on a FiT.
Technologies eligible for the scheme include Microgeneration Certification Scheme (MCS) certified:
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-fertiliser 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.
2. Export tariff
This is a bonus payment for any extra electricity you generate and sell back to the National Grid.
What are the benefits of the Feed-in Tariff scheme?
There are three main perks of the FiT scheme:
You get paid for selling back to your energy supplier any energy you produce and don’t use.
You make savings on your energy bills for the energy you do use.
A 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 falling costs of installing solar power, and the government’s desire to reallocate funds to larger projects, 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.
FAQs
Who is responsible for the Feed-in Tariff scheme?
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 (SEG). 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 among energy providers. 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.
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.
For more than 20 years, Dan has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers.
Our content is written by a Compare the Market expert, backed by data and enhanced by AI. Find out how we ensure accuracy and quality in our Editorial Guidelines.
