Solar Feed-in Tariff

The UK ‘Feed-in Tariff’ is a government backed policy to encourage the uptake of renewable energy in the UK.

The Tariff came into effect on the 1st of April 2010, although installations completed between July 2009 and the start of the scheme will also qualify for the incentives.

Instead of providing a grant to help you buy a solar system, the ‘Feed-in Tariff’ rewards you for the amount of energy you generate, regardless of whether you consume the electricity or not. The scheme also provides an additional payment for any electricity you export.

Under the Feed-in Tariff, an average home in the UK, with a system installed can earn an income by generating and exporting its own solar electricity. You can also save around money every year on your electricity bill.

What is the feed-in tariff and how does it work?

The Solar Feed-in Tariff a financial incentive backed by the Government and paid by your energy company to generate your own clean electricity.

An average three-bedroom home will earn an income every year by generating its own solar electricity – and that’s on top of the likely reduction of your household electricity bill. You can earn a fixed income for every kilowatt hour of electricity you generate and use in your property. And you can also earn an additional fixed income for every kilowatt hour of electricity you generate and sell back to the grid. The income is guaranteed for a fixed period (for solar pv systems) and index-linked.

When you need to use electricity at night (when it is dark you won’t be able to generate enough electricity from solar technology), you can still buy your electricity from your utility company, but you will need to use much less than usual. If you want to make the most of solar technology – and to save even more on your electricity bills – try to become as energy efficient as you can; for example, run electrical appliances like your washing machine and dishwasher during the day.

If you invest in solar energy now, you will be guaranteeing that income for the a fixed term. Ofgem will administer the feed-in tariff scheme and energy suppliers will be responsible for payments to their customers.

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