Feed In Tariffs Explained
Feed-In Tariffs are payments to ordinary energy users for the renewable electricity they generate
Feed-In Tariffs (also known as FITs) are the electricity part of what some people call Clean Energy Cash back, a scheme that pays people for creating their own "green electricity". The second part of the scheme is the Renewable Heat Incentive, a similar measure for heat.
The tariffs have been introduced by the Government to help increase the level of renewable energy in the UK towards our legally binding target of 15% of total energy from renewables by 2020 (up from under 2% in 2009). For more information on the regulatory aspects, see our page on Tariff Regulations.
How do the Feed-In Tariffs help?
The Tariffs give three financial benefits:
- A payment for all the electricity you produce, even if you use it yourself
- Additional bonus payments for electricity you export into the grid
- A reduction on your standard electricity bill, from using energy you produce yourself
Who are they for?
Broadly speaking, the FITs are for everyone, including households, landlords, businesses and even organisations such as schools and care homes.
What renewable energy systems are eligible?
Most forms of renewable electricity generation in all sizes up to 5 megawatts (enough for a large factory), which are supported by the Renewables Obligation.
