What was the feed-in tariff?

The feed-in tariff (FIT) pays more than 800,000 homes for generating renewable electricity, mainly from solar photovoltaic (PV) panels. It closed to new applicants in March 2019.

What was the feed-in tariff?

The feed-in tariff (FIT) scheme offered cash payments to households that produced their own electricity using renewable technologies, such as solar PV panels or wind turbines.

The scheme closed to new applicants at the end of March 2019. This doesn’t affect you if you already receive FIT payments.

The payments are guaranteed by the government and paid for by a levy on everyone’s energy bills.

If you’re looking to install solar panels now, find out about the Smart Export Guarantee for solar panels instead.

Feed-in tariff payments are made up of two elements:

Generation tariff

• A payment for the total amount of electricity you generate, calculated per unit.

Export tariff

• A payment for the units of electricity you export to the National Grid, usually assumed to be 50% of the amount you generate if you don't have an export meter.

They are payable for up to 20 years (25 years if you signed up before August 2012) and usually paid each quarter. They’re tax free.

Feed-in tariffs are for renewable electricity only. If you’re considering installing solar water heating, a ground source heat pump, air source heat pump or wood heating system, these are heat-generating technologies. 

Feed-in tariff rates and earnings

If you already get the feed-in tariff then how much you earn depends on:

• the FIT rates you signed up to
• the technology you installed
• how much electricity your system generates
• how much of your electricity you use.

Those who signed up to the feed-in tariff when it first launched in 2010 are paid a much more generous rate than those who signed up shortly before the scheme closed.

Rates are adjusted according to RPI (retail price index) inflation each financial year.

Feed-in tariff rates 2010 to 2019

Whether you can make a profit will depend on how much your system cost to install plus any maintenance costs, balanced against how much you make or save from it.

Those who signed up when the feed-in tariff was smallest could take around 25 years for savings to pay for their system, though how much of your electricity you use makes a big difference.

The generation tariff rates for different technologies vary. The rates currently being paid to those who signed up just before the scheme closed to new applications are below. They are adjusted by RPI at 13.4% for the year from 1 April 2023:

Feed-in tariff generation rates 2023-24

Making sure your home is well-insulated and you have energy-efficient appliances will also help you make the most of your renewable electricity and cut your fuel bills.

My solar panels get the feed-in tariff: what happens now it’s closed?

If you already receive the feed-in tariff you will continue to do so. The scheme has closed to new applicants but those already signed up will continue to receive payments for the duration of their agreement.

Tips to make the most of your feed-in tariff

To maximise your savings and earnings from the feed-in tariff, try some of these tips suggested by Which? members who have solar PV and receive the feed-in tariff:

• If you don’t have a smart meter, your electricity company will usually estimate that you don’t use 50% of the electricity you generate and put that into the grid. So if you use more than 50%, you gain.
• It makes sense to use as much of your free generated electricity as you can. If you have a device in your home to show your electricity generation in real time, you can time your electricity use to coincide with when the most electricity is being generated.
• Set the time-delay on appliances that use a lot of electricity (such as the dishwasher, tumble dryer and washing machine) so that they come on sequentially throughout the day when your system is generating electricity, not all together.

Good Energy launched its FIT REGO Boost in October 2024, which helps you get paid for the certificates (REGOs) produced when your solar panels generate electricity. These are bought by energy suppliers to show that the electricity they sell is renewable. 

Good Energy says that their price has risen enough that small generators can receive a worthwhile payment. Find out more about Good Energy's scheme. 

Can I still get paid for generating renewable electricity if I'm not signed up to the feed-in tariff?

Yes. The Smart Export Guarantee (SEG) is the name for the new scheme that pays homes for excess renewable electricity they generate and put into the grid.

All energy firms with more than 150,000 domestic electricity customers must offer a SEG tariff.

The SEG differs from the FIT in a few key ways:

• Payments are based on measured export of electricity, whereas export can be ‘deemed’ for FIT payments.
• Companies set the rates of their SEG tariffs. The government set feed-in tariff rates.
• You need a smart meter, or another meter that can measure half-hourly export, to get an SEG tariff.

Find out more about the Smart Export Guarantee, including which companies are offering SEG tariffs and how much money you could earn.

If you’re considering installing solar panels or other renewable electricity generation at home, make sure you use a reputable company accredited by the Microgeneration Certification Scheme (MCS) and renewable installation firms approved by Which? Trusted Traders. Ensure the technology is MCS-accredited, too.

Plus find out more about installing solar panels.

Can I take my feed-in tariff if I move home?

If you move home, the ownership of the renewable technology will usually transfer to the new owners of the property. Therefore they would qualify for the feed-in tariff.

You or they would need to notify the energy company of the change after the move.

Feed-in tariff payment problems and how to solve them

Over the years, we’ve heard from solar panel owners who have had problems receiving their feed-in tariff payments.

Almost one in five Which? members with solar panels told us they’d had a problem getting their FIT paid when we ran a survey in May 2018. The most common complaint was receiving payment later than expected.

But things have improved since we first asked this question six years ago, when more than a third told us they'd had a payment problem.

Some suppliers can take up to eight weeks to pay your FIT, while others say they’re much faster, promising payment before the end of the month or the following month after you send a meter reading.

If your payments seem slow, check your feed-in tariff contract to find out when you should expect them. If you don't have a smart meter, make sure you submit meter readings on time, otherwise your FIT licensee has nothing to base your payments on. If you miss the deadline you may have to wait until the next meter reading period.

If you want to complain about your FIT payments contact your FIT licensee directly, using the complaints process that should be set out on its website.

Can I change my feed-in tariff supplier?

Your feed-in tariff payments will be the same regardless of which electricity company pays them. This is because the rates are set by the government.

You don’t have to use the same electricity company you get your electricity supply from as your feed-in tariff licensee. You can change your FIT licensee if you wish.

All electricity companies with 250,000 or more domestic electricity customers have to pay the feed-in tariff. These are British Gas, EDF Energy, Eon, Octopus Energy, Ovo Energy, Scottish Power, Shell Energy, Utilita and Utility Warehouse.

Some smaller firms also chose to pay the feed-in tariff. These include Ecotricity, Engie, Good Energy and Green Energy UK.

See Ofgem’s full list of FIT licensees.

Can I get the feed-in tariff in Northern Ireland?

The feed-in tariff wasn’t available in Northern Ireland. Instead it had a scheme called the NIRO (Northern Ireland Renewables Obligation) that you could sign up to if you generated renewable electricity.

However, this scheme has also now closed to new installations. If you already receive Renewable Obligation Certificates (ROCs), you will continue to do so for either 20 years from the date your system was accredited or until 31 March 2037 – whichever is closer.

Additionally, if you register your installation with Northern Ireland Electricity (NIE) Networks you will get an export meter. Then you can sign up for an export tariff and be paid for every surplus unit of electricity you produce and export to the grid. For example, Power NI currently pays 14.22p/kWh.