Solar & Renewables

FIT (Feed-in Tariff)

The Feed-in Tariff was a UK government scheme that paid renewable energy generators for electricity produced and exported, closed to new applications in 2019.

What is the Feed-in Tariff?

The Feed-in Tariff (FIT) was a UK government scheme that paid owners of small-scale renewable energy systems for the electricity they generated and exported. The scheme closed to new applications on 31 March 2019.

How FIT Worked

FIT provided two types of payment:

Generation Tariff

  • Paid for every kWh generated
  • Regardless of whether used or exported
  • Rate depended on technology and installation date
  • Guaranteed for 20-25 years

Export Tariff

  • Paid for electricity exported to grid
  • Typically 50% of generation deemed exported
  • Or metered export with appropriate meter

FIT Rates History

Rates declined over the scheme's lifetime:

YearSolar PV Rate (example)
201043.3p/kWh
201221p/kWh
20164.39p/kWh
20193.79p/kWh (final)

FIT vs SEG

AspectFITSEG
StatusClosedOpen
Generation paymentYesNo
Export paymentYesYes
Rate guaranteeYes (20-25 yrs)No
Government set ratesYesNo

Existing FIT Installations

Installations registered before closure continue receiving:

  • Generation tariff payments
  • Export tariff payments
  • Annual RPI adjustments
  • Until their 20/25 year term ends

Impact on Solar Industry

FIT's closure shifted the industry to:

  • Self-consumption focus
  • Battery storage adoption
  • SEG for export revenue
  • Reduced payback periods