How do feed-in-tariff payments work?

To encourage the use of solar panels for generating domestic electricity, the UK government have brought in a feed-in tariff subsidy scheme, (they call it the 'Clean Energy Cash Back scheme'), that pays you for each kWh of electricity you generate (whether or not you use it in your own property, or feed it back into the national grid). You also get paid a smaller amount for the proportion that you do feed into the national grid. This scheme makes domestic solar installations a genuinely attractive financial investment. However, to qualify for the scheme, your solar PV system has to meet strict standards and be installed by a certified installer. Ultimately what matters to most homeowners is the payback time - how long they will have to wait until the system recoups its own cost. Under the new UK solar feed in tariffs, a payback time of 10-15 years may well be realistic.