Feed in tariffs

What is a feed in tariff?

A feed in tariff is a fairly simple subsidy mechanism: for every kWh of electricity you generate from solar panels installed on your property, you get paid a fixed sum of money. It doesn't matter if you use the electricity in the home yourself, or export it to the national grid, you get paid for every unit you generate.

I have heard that the tariff has been reduced, or cut altogether - is this true?

There have been changes to the tariff, although it still makes solar a worthwhile investment opportunity. Currently you would be paid per kilowatt hour (kWh) of electricity generated, along with an export tariff per kWh for electricity exported, which in most cases is estimated at 50%. One kWh is the same as one unit of energy, which you currently buy at around 13p. With the price of panels falling all the time and the increase of panel efficiency, even with the current rates you can still get excellent return on investment figures, especially when compared to current interest rates!

Will the tariff pay for the cost of installing the panels?

Almost certainly, yes. How long it will take to pay back will depend on a large number of factors, such as shading, the orientation of the array, the rate of the feed-in-tariff and the installation cost - which can vary significantly depending on your house. However, a well designed system using off-the-shelf components can often pay for itself in as little as 10 years.

Does it work elsewhere?

Yes. Before our FiT was introduced, Germany had around 200 times the installed capacity of solar panels that the UK had - an expansion driven entirely by the feed-in tariff the German government brought in.

I'm interested. What should I do?

Get in touch! We’re friendly, helpful and relaxed in our sales approach. We’ll be happy to give you a good indication of how much a system is likely to cost and what your payback period is likely to be.

Is there there anything else I should know?

The Feed in Tariff is being regularly reduced, please see the .gov website for confirmation.

Installations not meeting the Energy Efficiency Requirements (an EPC of band D or higher) will receive the stand-alone rate.

More details on the Feed-in-Tariff can be found on Ofgem's website.