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Financial support for renewable technology

Feed-in tariff

Under the feed-in tariff scheme (FITs), householders receive payments for the electricity generated by eligible installed systems like solar PV, wind or hydro turbines, or micro CHP.

The FITs scheme closed to new applications on 31 March 2019.

If you already have an eligible installed system that you are receiving FITs payments for, you are unaffected by the scheme closure. You will continue to receive FITs payments as normal.

Who is responsible for the FITs scheme?

The energy regulator Ofgem E-Serve continues to administer the scheme.

Energy suppliers, also known as FITs licensees, make FITs payments. If you have a query about your FITs payments, you can contact Ofgem or your FITs licensee. Ofgem has a list of FITs licensees contact details.

The UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) are the relevant contact for queries about legislation.

How do FITs payments work?

FITs payments comprise of two separate tariffs:

  • generation tariff – a rate for each unit (kWh) of electricity generated
  • export tariff – a rate for each unit (kWh) exported to the electricity grid

By installing a renewable technology, you should also save money on your electricity bills. How much you save will depend on how and when you use electricity at home.

Visit our renewable energy pages for more information about how to make the most of your generated electricity.

I already claim FITs, can I apply for the Smart Export Guarantee too?

You will need to give up your FITs export tariff, but you can keep your FITs generation tariff as well as apply for a Smart Export Guarantee (SEG) tariff.

Some points to consider:

  • SEG tariffs vary between energy suppliers, but most suppliers offer around 3-4p/kWh. If your FITs export tariff is higher than this, it might not be worth giving up.
  • Many FITs claimants export tariff payments are ‘deemed’. ‘Deemed’ export tariff payments cover 50% of your generated electricity, regardless of how much electricity you export to the grid. So, if you’re using more than 50% of your generated electricity, installing a smart meter and moving to ‘actual’ export could mean you reduce your payments.

As part of the SEG application process, you’ll be asked to confirm whether you currently receive FIT export payments. Find out more about the Smart Export Guarantee, including eligible renewable technologies.

 

 

Changes to your FIT installation

Adding capacity

You can add additional capacity to your installation, for example, additional solar PV panels, without affecting your current FITs payments. However, you cannot apply for additional FITs payments for the ‘new’ capacity.

Damaged equipment, repair or replacement

If your renewable technology equipment suffers damage or breakdown and requires repair or replacing, speak to your FITs licensee as soon as possible. Your FITs licensee will determine how it might affect your payments.

You can speak with a local MCS-accredited installer for advice and support about the repair or replacement work.

Want to learn more about renewables?

Renewable energy sources can heat your home while reducing your energy bills and your reliance on fossil fuels used to generate electricity.

Find out more

Last updated: March 9th, 2021