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FIT or Feed-in-Tariff is a UK government initiative to provide incentives to people who use renewable energy to produce electricity. This came into force from 01 Apr 2010. Feed-in-tariff gives you 3-way financial benefits:

  1. 1) You are paid for every KWh of electricity that you produce and use
  2. 2) You are also paid for the amount of electricity you feed back into the national grid
  3. 3) You save on your energy bills

A rough estimate tells that if you have 2.5 KW of solar PV installed, you would roughly save around £950 annually. Moreover, all your income from renewable energy is tax-free. You can use the feed-in-tariff calculator to do your own calculations.

Who Is Eligible For FIT?

Here are the eligibility criteria:
-  Your renewable energy system should qualify for the FIT (PV qualifies)
-  You should have installed your renewable energy system after 15th July 2009
-  You must use MCS accredited equipment
-  You must use MCS certified solar solutions provider or installer

What Are The Tariffs For Solar PV?

The tariffs for solar PV will pay you up to 41.3 pence per KWh for systems that are installed before April 2012. These tariffs are for 25 years. However, the tariffs are index-linked and account for inflation.
The table below shows the "Feed-in Tariffs" payments the UK government has set up.

 

Scale of PV
System Installed
Tariff rate for new installations Years 1-3. Pence per KiloWatt hour generated
01.04.10 -
31.03.11
01.04.11 -
31.03.12
01.04.12 -
31.03.13
4kW or less Retrofit 41.3p 41.3p 37.8p
4kW or less New Build 36.1p 36.1p 33p
>4kW - 10kW 36.1p 36.1p 33p
>10kW - 100kW 31.4p 31.4p 28.7p
>100kW - 500kW 29.3p 29.3p 26.8p
Stand-alone 29.3p 29.3p 26.8p

 

Note: There is tariff digression for solar electricity systems that are installed after June 2012.

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