Feed In Tariff

The feed in tariff is a payment incentive to encourage people to invest in systems which generate electricity from renewable technologies like solar panels, wind, hydro.

The owner of the system receives a payment not only for unused electricity which is fed back into the grid but also for every unit of electricity generated whether or not it’s being used.

Tariffs are index linked, tax free & are reviewed quarterly by the government, but these stay the same for 20 years once you enter the scheme. The most up to date figures can be found online at www.ofgem.gov.uk/fits

Example

 

The amount you get varies depending on the type & size of installation.

For solar power rates are tiered to encourage energy efficiency before energy generation. The generation tariff is paid at the upper rate (currently 14.38p/kWh) where the property has an EPC (Energy Performance Certificate) of Band D or above. If not, the rate is 6.61p/kWh.