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Feed In Tariffs explained

What are Feed-In-Tariffs (FITs)? In 2010, the Government launched the Feed-In-Tariff (FiT) scheme. This provided financial incentives to homes and businesses for installing and using renewable energy technologies. These include Solar Panels, Wind Turbines as well as other renewable technologies.

The FiT scheme not only pays you for every kilowatt hour (kWh or unit) of electricity produced, but you also get paid for any excess electricity that’s exported back to the grid.

Since the scheme was introduced, over half a million UK homeowners have realised the benefits and have had PV panels installed on their home.


“From start for finish the Silverstone “Team” have been very professional, completed the installation on time and have been excellent to provide this service”

Mr Soons

What does this mean for me? 

Once you install Solar Panels and are registered for the Feed In Tariff, there are three ways they can save you money:

  1. Get paid for all the energy you produce

Your Feed-In-Tariff generation supplier will pay you for every single unit of electricity your Solar PV System generates, no matter whether you use it in your home or not. The amount that they’ll pay you is set in a generation tariff. The current Feed-In-Tariff for a typical household is 13.39p per kWh, and the government guarantees to fix this price for 20 years, making this one of the best investment opportunities out there. Have a look here for the latest up to date Feed-In-Tariff for different sized Solar PV systems (Feed-In-Tariffs).

  1. And get paid extra for the electricity you don’t use

In addition to the Feed-In-Tariff, it is assumed that you will only use 50% of the electricity generated by your solar panels. Therefore your Feed-In-Tariff supplier will pay you an additional 4.85p for 50% of the electricity generated. It would be even more beneficial to you if you use more than 50% of the electricity generated as you will still be paid for exporting electricity, even if you use it.

  1. Cut your energy bills

Sunlight is free so, once you’ve paid the initial installation fees of the solar panels, your electricity costs will be significantly reduced. The electricity generated by your panels will automatically be used to power your appliances, so a lot of the power you use during the day will ultimately be free. You can also fit a Self-Consumption system or an Immersun which can help you use more of the electricity you generate – saving you even more money. As electricity costs are destined to increases year on year, solar panels are a great investment for the future.

  1. Solar Panel System Calculator

See how much money a typical domestic household Solar PV system can save you and make you over the course of 20 years. Click here to find out.

Want to know more about how Feed In Tariffs work? Speak to one of our team who can tell you how they can save you money. Call us on 01834 888 330.