It’s official – the government has confirmed that the Feed-in Tariff (FiT) payment scheme will end on March
What is the FiT Rate?
The FiT rate is a government scheme which pays homeowners and businesses who generate their own electricity through renewable technologies such as solar PV and wind power. The scheme was first introduced in 2010 when the cost of solar PV installation was much higher; it was intended to encourage us to invest in the technology and reduce the UK’s reliance on fossil fuels.
There are 3 ways solar PV owners can benefit from the FiT scheme:
Generation Tariff: This tariff pays you for every kWh of energy your solar PV generates which is tracked by a generation meter.
Export Tariff: This tariff buys the energy your system generates but you don’t use; this surplus is automatically sent to the National Grid. Most homes do not have an export meter so most suppliers will estimate you’ve exported 50% of your generated energy and pay you based on that figure.
Energy Bill Savings: By generating and using your own free energy, you will need to buy less from your supplier saving you money on your energy bills.