Feed in Tariffs Explained

Every year thousands of UK households are topping up their annual income by plugging into the positives of Solar Energy.

Thanks to Feed-in Tariffs (FITs) they are able to continually recharge their bank balances whilst playing their part in cutting the country’s carbon emissions.

By empowering people to enter the Renewable Energy market, Feed-in Tariffs give homeowners the chance to earn a tax-free income and cut their energy bills.
 

How can I earn from FITs?

Feed in Tariffs offer households three ways of making money. The biggest portion of earnings comes from the generation tariff, which pays up to 21p for every unit of electricity produced.

Meanwhile, the export tariff earns an additional 3.1p for every surplus unit not used in the property and exported to the national grid.
 

Because homes with Solar PV are able to use power at the source, they can also make significant savings on energy bills.

A typical 2kWp Solar PV system costing around £6,000 to £8,000 would take around 10 - 13 years to recover the initial capital cost under the FITs initiative.

Our approved installers will be able to provide you with the actual costs and potential savings related to your specific project. You can also get an estimate by using our UK Feed in Tariff Calculator.

Furthermore, the earnings you receive from UK Feed In Tariffs are tax free. This means, that with an average-sized system, you will be over £500-a-year better off.

 

Are FITs a Good Investment?

Regardless of any changes that may be made in the future, anyone installing a Solar PV system now will receive the rates published on this website for 25 years from the date that the Solar PV panels are installed and commissioned.

Furthermore, the Feed in Tariff rates are linked to inflation, which typically increases, and as energy prices continue to rise, it all adds up to a very attractive proposition.

The Feed-in Tariff is seen as one of the Government’s key weapons in its war on reducing carbon emissions and increasing the amount of energy produced by Renewable Energy systems in the UK.
 

Ultimately, the aim is to exponentially grow the percentage of power that comes from renewable sources from 2% in 2009 to at least 15% by 2020.

As well as adhering to the targets set out by the Kyoto agreement, the Government is under pressure to decrease the nation’s reliance on depleting fossil fuel supplies.

Before FITs were introduced, the UK Government offered grants to cover part of the cost of photovoltaic Solar Panel systems.

These grants were discontinued in February 2010, as the long-awaited Feed in Tariffs UK scheme came into effect in April of the same year, offering households a much more financially appealing way of tapping into Solar Energy.