Feed-in tariffs (FIT) reward domestic energy users who generate renewable energy and who also send it back to the grid. The scheme was brought in by the government, designed to promote renewable and low-carbon electricity generation technologies.
What are the positives?
The FIT gives you 3 financial benefits:
- A reduced price on your current energy bill by using the energy you generate
- For all the electricity you generate, you get a monthly payment
- An extra payment for all the electricity you don’t use and send back to the grid
How do I enroll in the feed-in tariff
If you participate in generating your own electricity, whether it be photovoltaic, wind or other renewable technologies, you will need to apply for a feed-in tariff license to receive payment from the government.
Get your renewable technology installed by a reputable company certified by the Microgeneration Certification Scheme (MCS).
Your accredited installer will provide you with a MCS certificate, which you'll need to present to your chosen energy company to be accepted to receive payment through the FIT.
Once you’ve been approved, a tariff is assigned to your installation based on a number of factors, including, but not limited to, your technology, total capacity installed and when the installation was completed.
Your tariff is determined based on meter readings taken from compliant metering and set by the department for business energy and industrial strategy (BEIS).
Renewable Heat Incentive
The RHI works in a similar way to feed-in tariffs, powering your heating system through a renewable source.
Although it is not as popular as generating renewable electricity, with the RHI you receive regular tariff payments for a seven year period on the amount of renewable energy generated.
You can generate the energy via many renewable sources, including solar thermal panels, air source heat pumps, ground source heat pumps and biomass.
If you already have one of these sources connected to your home, you have 12 months from the date it was installed to apply for the scheme. Before applying, first check that your product is viable for the scheme on the product eligibility list.
During the scheme, you have responsibilities to keep your property and heating system in order, so you must comply with certain conditions to continue receiving payments, including changes to your heating system, meters, criteria information and your biomass or stove boiler.
During the scheme, an audit can be taken place by Ofgem to make sure you are complying to these rules and that all systems are up to date.
| Description | Total installed capacity (kw) | Tariff per/kWh |
|---|---|---|
| Standard Solar photovoltaic receiving the higher rate | 0-10 10-50 50-250 |
4.00 4.22 1.89 |
| Standard solar photovoltaic receiving the middle rate | 0-10 10-50 50-250 |
3.60 3.80 1.70 |
| Standard solar photovoltaic receiving the lower rate | 0-10 10-50 50-250 |
0.38 0.38 0.38 |
| Standard large solar photovoltaic | 250-1000 1000-5000 |
1.54 0.38 |
| Stand-alone solar photovoltaic | 0-5000 | 0.23 |
| Anaerobic digestion | 0-250 250-500 500-5000 |
4.99 4.72 1.76 |
| Combined Heat and Power | 0-2 | 13.95 |
| Hydro | 0-100 100-500 500-2000 2000-5000 |
7.78 6.24 6.24 4.54 |
| Wind | 0-50 50-100 100-1500 1500-5000 |
8.26 4.88 2.58 0.80 |
Source Ofgem