Feed-In Tariffs Explained

A Feed-In Tariff (FIT) is one of the ways you can get involved in tackling climate change. Whether you make electricity from sun, wind or any of the other renewable options, the Government scheme encourages people to join in by providing a guaranteed return on their investment. Once you have your electricity generating equipment installed, you’ll need to register with a supplier* of your choice. Then, if you use the electricity you generate you may reduce your electricity bills, and you’ll get paid for any excess you export to the grid. Also, the Feed-In Tariff will pay you a rate for all of the electricity you generate. And you’ll get paid for up to 20 years, so that you’ll get a return on the cost of installing your equipment.

How a Feed-In Tariff works

The FIT scheme supports many of the options available to generate your own electricity. You’ll get paid for the energy (electricity) you create, which you can use to power your home and appliances. Plus, you can export any electricity you don’t use and you’ll get paid for that too.
Once you’ve had your generating equipment installed, you can then apply for the Feed-In Tariff with your preferred supplier*. To register, you just need to complete an application form and provide your supporting documentation. Be sure to read the terms and conditions. You will also need supporting documents to complete your application. In most cases your installer will help identify these documents.
Once you’ve completed your application, provided your supporting documents and signed any required declarations, your preferred supplier* will enter your information onto the FIT scheme and Ofgem’s central registry. Then you’ll submit meter readings every quarter so your preferred supplier* can make your payments. You can also do all this online and choose to have your payments by cheque or direct to your bank account.

Eligibility for a Feed-In Tariff

To see if your generating equipment is eligible for a FIT, check the following statements. Eligibility is still subject to other terms and conditions, which are outlined with the FIT application document.
1. Your installation has a total installed capacity no larger than 5MW or 2kW for Micro CHP.
2. Your installer is MCS (Microgeneration Certificate Scheme) or ROO-FIT Accredited.
3. You have a compliant generation meter (if you’re unsure, contact your installer for advice).
4. All parts of your generating equipment were new at the time of commissioning.

Eligible electricity generating equipment includes:

1. Solar photovoltaic (Solar PV)
2. Wind turbines
3. Hydro Systems
4. Micro combined heat and power (CHP)
5. Anaerobic digestion (Biomass)

* FITs payments are made at least quarterly by licensed electricity suppliers that participate in the scheme. These are known as FIT Licensees. They are also responsible for the application process for installations following the Micro-generation Certification Scheme (MCS) route of accreditation. See for a list of FIT Licensees.
Not all licensed electricity suppliers make FITs payments, and some are not obliged to accept applications from certain people. Before applying, check whether your licensed electricity supplier is a FIT Licensee and whether they will accept your application.

For more information on the Feed-in Tariff Scheme please click on the pdf below Ofgem Feed-in Tariff Scheme.