The Feed-in Tariff (FIT) was a government scheme in Great Britain that paid households, businesses and community groups for the electricity generated by small-scale renewable and low-carbon installations, such as rooftop solar panels. It ran from 1 April 2010 and closed to new applicants from 1 April 2019, so 31 March 2019 was the last day to apply. Installations already accredited keep receiving payments for the rest of their tariff period.
How it works
FIT participants receive two kinds of payment from a licensed electricity supplier, known as a FIT licensee:
- a generation tariff for every kilowatt-hour the installation produces, whether it is used on site or not
- an export tariff for electricity sent to the grid.
Tariff rates are set by government, not by suppliers, and depend on the technology, its size and when it was first accredited. Ofgem administers the scheme, and the cost is shared among licensed suppliers according to their share of the market.
| Detail | FIT |
|---|---|
| Eligible technologies | Solar PV, wind, hydro, anaerobic digestion, micro-CHP |
| Maximum size | 5 MW (micro-CHP 2 kW) |
| Length of support | 10 to 25 years, depending on technology, size and commissioning date |
| Open to new applicants | No, closed since 1 April 2019 |
What replaced it
New small-scale installations cannot join FIT. Since 1 January 2020 they can instead earn money for exported electricity through the Smart Export Guarantee (SEG). The SEG pays only for exports, not for generation, and suppliers set their own rates.
If you buy a home that already has FIT-accredited solar panels, the payments may transfer with the installation, but you need to contact the FIT licensee to update the details. Check your paperwork and Ofgem’s guidance for your own case.
Read more: Solar panel grants and incentives in the UK.