Feed-in tariffs
The Feed-in Tariff (FiT) was a UK government scheme designed to promote the uptake of renewable energy technologies. While the scheme closed to new applicants in March 2019, it remains highly relevant for hundreds of thousands of households who installed solar panels before that date.
How the FiT scheme works
If you are already on a FiT contract, you will continue to receive payments for the duration of your agreement (typically 20 or 25 years from the date of installation).
The scheme consists of two types of payments:
- Generation Tariff: A set rate for every unit (kWh) of electricity your system generates, regardless of whether you use it or export it.
- Export Tariff: An additional rate for every unit you export back to the grid. For most domestic systems, this is “deemed” at 50% of your total generation, meaning you get paid even if you use all the power yourself.
Key information for FiT customers
- Index-linked: FiT rates are adjusted annually in line with the Retail Price Index (RPI).
- Tax-free: For most domestic installations, FiT payments are exempt from UK Income Tax.
- Transferable: If you sell your home, the FiT contract usually transfers to the new owner, often increasing the property’s value.
- Meter readings: You must provide regular meter readings to your FiT licensee (usually your energy supplier) to receive payments.
FiT vs Smart Export Guarantee (SEG)
If you are installing solar panels today, you cannot join the FiT scheme. Instead, you will use the Smart Export Guarantee (SEG).
| Feature | Feed-in Tariff (FiT) | Smart Export Guarantee (SEG) |
|---|---|---|
| Status | Closed (March 2019) | Open to new applicants |
| Generation Payment | Yes (per kWh generated) | No (only for exported power) |
| Export Payment | Deemed (usually 50%) | Metered (actual export) |
| Contract Length | 20-25 years | Variable (often 12 months) |
| Smart Meter Required | No | Yes |
Moving home? If you are buying a home with solar panels, ensure the seller provides the FiT transfer documents and the original MCS certificate. This allows you to continue receiving the payments.
More information
If you are looking for information on current export payments for new installations, please see our guide on the Smart Export Guarantee (SEG).