What is a feed in tariff ?

The Feed-in Tariff (FIT) scheme is a government initiative that pays householders and businesses to generate their own energy from renewable sources. The FIT scheme makes it more financially viable for householders and businesses to buy and install a renewable energy generator, such as solar photovoltaic (PV) panels or a wind turbine. Qualifying generators will be eligible to receive a set payment rate for every unit (kWh) of electricity produced, even if this electricity is used on site. Additional export payments also apply. Payment rates for both generated and exported electricity are fixed (and Retail Price Index adjusted each year), and for solar PV, generation rates apply for up to 25 years. This gives anyone participating in the scheme the security of a long-term market for the electricity they produce.

You’ll receive a generation payment for every kWh of electricity you generate, whether you use it yourself or export it to the Electricity Network. The rate per kWh varies depending on factors, such as the generator type and size. Generation rates are fixed (and RPI adjusted) in order to provide investor certainty.