Feed-In Tariffs scheme (FITs)
If you install an electricity-generating technology from a renewable or low-carbon source such as solar PV or wind turbine, the government's Feed-In Tariff scheme (FIT) could mean you get money from your energy supplier.
You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And of course you'll also save money on your electricity bill, because you'll be using your own electricity.
A similar scheme is being introduced for heat generation: the Renewable Heat Incentive.
About the scheme
Most domestic technologies (and larger systems up to 5 megawatts) qualify for the scheme, including:
- solar electricity (PV) (roof mounted or stand alone)
- wind turbines (building mounted or free standing)
- hydroelectricity
- anaerobic digesters
- micro combined heat and power (CHP).
It is energy suppliers that will pay you the FITs payments with the 'big six' energy suppliers required by law to provide these payments. Some smaller electricity suppliers may not offer FITs payments as it is not compulsory for them though many have opted to offer the payments. Go to the Ofgem website for a list of FITs-licensed suppliers.
The tariffs available and the process for getting them depend on when the technology was installed, and whether the system and the installer were certificated under the Microgeneration Certification scheme.
How FITs work
Electricity is created by solar panels. Your electricity supplier pays you for each unit of electricity you generate.
You can use the electricity you generate meaning you don’t have to import from the grid
You export electricity back to the grid when you don’t use it. You are paid an export tariff
You import electricity from the grid when you need additional power.
If you are eligible to receive FITs you will benefit in three ways:
- Generation tariff - your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 25 years) and are index-linked. For a full list of generation tariffs, see FIT payment rates published by Ofgem
- Export tariff - you will get a further 3.2p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate (so that if your solar PV system is less than 30kWp you do not need to have an export meter fitted)
- Energy bill savings - you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.
A typical domestic solar electricity system with an installation size of 3kWp could earn:
- £530 a year from the Generation Tariff
- £40 a year from the Export Tariff
- £100 a year reduction of current electricity bills
to give a total saving of around £670 per year. See our Solar Energy Calculator to find out how much you could earn.
Registering for FITs
Once your chosen installer has installed your generating technology, take these steps to register for FIT:
- Ask your installer to register you on the central MCS database. The installer will then send you a certificate confirming MCS compliance.
- Tell your chosen FIT supplier that you wish to register for the FIT and send them a completed application form along with the MCS certificate and the Energy Performance Certificate that shows your home has an energy efficiency rating band D or better (applicable to solar PV only from 1st April 2012 although the UK Government is consulting on whether to include this requirement for wind turbines and microCHP too).
Your FIT supplier will:
- cross-reference your installation with the MCS database and undertake other eligibility checks.
- confirm your eligibility and the date you are eligible for payments from
- add you to the Ofgem Central FIT Register, which records all installations in the FIT scheme
- agree with you if and when you will need to provide meter readings and when they will make FIT payments to you – these will form part of your statement of FIT terms.
Support in Scotland
Zero-interest loans of up to £2000 towards the cost of installing solar PV systems are available in Scotland. Find out more here. If you live in a Universal Home Insulation Scheme (UHIS) area in Scotland you could benefit from an interest free loan of up to £10,000 for renewables or energy efficiency measures. To find out if you live in a UHIS area please contact your local Energy Saving Scotland advice centre on 0800 512 012.
