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Investors in Solar PV Systems Benefit from Feed-in Tariff

Feed In Tariff


Since the introduction of the Feed-in Tariff (FiT) in April 2010, home owners, commercial property owners and communities installing solar PV are paid for all the electricity they generate, including the electricity that they use. This 'clean energy cashback' for retro-fitted installations up to 4kW is currently 13.88 pence* per kilowatt hour (p/kWh), for example, and is in addition to the savings on electricity bills. 

The Department of Energy and Climate Change (DECC) has introduced the Feed-in Tariffs as part of the UK Government's drive to reach the target of 15% of energy coming from renewables by 2020.

If you are eligible to receive the FiT then you will benefit in 3 ways: receiving a generation tariff and an export tariff on top of money saved on electricity bills.

The table below highlights the differences in rates between the capacity you have installed and how energy efficient the building is.  There are also different tariffs depending on whether the electricity is consumed on-site or is exported back to the electricity grid as surplus - clarity on the different tariffs is given below the table. 

FIT Rates

Generation tariff

A set rate paid by the energy supplier for each unit (or kWh) of electricity you generate -including those that you use on site. Once your installation is commissioned and you join you will continue on the same tariff for 20 years. 

Export tariff

You receive a further 4.85p/kWh from your energy supplier for each unit you export back to the electricity grid - those that are not used on site and are surplus. Domestic FiT installations are likely to have their export estimated at 50% in most cases until smart meters are rolled out.

Energy bill savings

You make 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.


Contact us today and find out how you can save on your energy bills or call us on 0845 301 3121

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