What is a Feed-in tariff?

So, what is a feed in tariff? Basically, it’s the rate of money paid by the Government to households, businesses and other associations to produce and generate their own electricity from solar panels. The UK Scheme started in April 2010, an average household could earn around £700 annually.

The feed-in tariff (FiT) was first conducted to encourage investment. Households were more likely to proceed with the installation if they were confident in earning a return on their own investment.

You can receive feed-in tariffs for both the generation of electricity and for giving back unused electricity to the National Grid. The payment relies entirely upon the technology and whether it is being installed in an existing home or as part of a new home. Future payments in the UK are secured for the next 25years for solar. Solar installations which were fitted and registered after 1st August 2012 will receive the payment for 20years.

The Energy Saving Trust has a feed-in tariff calculator which you can use to see how much you could receive and payments are tax-free, as long as you live in the property rather than renting it out.

You will only be entitled to the full feed-in tariff if the solar PV panels were fitted using a product and installer certified under the governments ‘microgeneration certification scheme.’ Homes must be brought up to a minimum energy efficiency standard –D to qualify.

Here is a link to the new feed-in tariff, effective from 1st April 2014 – 31st March 2015.


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