Feed-in Tariff

The Feed-in Tariff will be reduced in October 2015. Have your installation before then to maximise the amount you can earn.

The total savings/earning that you will make in the first year will be around £700. In the lifetime of the FiT this will be around £14,000.

Lock in the highest rate of tax free earnings you can have from the Feed-in Tariff by having a solar installation. Complete the form at the top to get started.



Solar Feed-in Tariff July to October 2015

Whilst the Feed-in Tariff has reduced over recent years, the cost of solar panels have also decreased, meaning they still deliver a healthy return of investment as well as protecting you from rising energy bills. The table below shows the current Feed-in Tariff rate.


Band (kW)
Generation Tariff from July 2015 (p/kWh)
4 or less
12.92
4 - 10
11.71
10 - 50
11.71
50 - 100
9.63
100 - 150
9.63
150 - 250
9.21
250 - 5000
5.94
Stand alone
4.44
Export Tariff
4.85




Previous Feed-in Tariff rates

Band (kW)

Generation Tariff between April and June 2014 (p/kWh)
Generation Tariff between July and Dec 2014 (p/kWh)
Generation Tariff between Jan and March 2015 (p/kWh)
4 or less
14.38
14.38
13.88
4 - 10
13.03
13.03
12.57
10 - 50
12.13
12.13
11.71
50 - 100
10.71
10.34
10.34
100 - 150
10.71
10.34
10.34
150 - 250
10.25
9.89
9.89
250 - 5,000 (or 5mW)
6.61
6.38
6.38
Stand alone
6.61
6.38
6.38




How does the Feed-in Tariff work?





What is the Feed-in Tariff scheme?

In the UK, the government has agreed to offer those people who install renewable energy systems (such as solar panels or wind turbines) a sum of money for each Kilowatt of energy they produce. This is known as the Feed-in-Tariff (FiT).

The FiT was first brought in to encourage investment in these types of technologies, while acknowledging the fact that they are expensive to install. Homeowners were more likely to go ahead with the installation if they could be sure of receiving a return on their investment.

The amount of the FiT is varied and changes depending on a number of factors. These include the size of the system installed, what type of renewable energy system it is and whether it was installed by a certified installer. All systems must be properly certified under the Microgeneration Certification Scheme (MCS) or they will not qualify for the FiT.

In addition to the FiT, homeowners are entitled to receive an export tariff. This is currently 4.64p for each unit of electricity which is sold back to the grid. Savings will also be made on general energy bills – adding to the attractiveness of these systems.

As can be seen in the table above, the size installation range from 4kW or less to 5mW. The lower amount is generally enough for an average home, while larger systems tend to be for community projects and larger scale solar or wind farms. The smaller the system the more money is offered, due to economies of scale.

The other main factor is the time of installation or the eligibility date. The FiT scheme is reviewed every three months and the tariff is set for the coming period. This alters the rates on offer for those time frames. Generally the FiT applies from the time it is applied for, not necessarily the time the panels were installed.
Homeowners also need to ensure they meet Energy Performance Certificate criteria to get the top rates.




The future of the Feed-in Tariff

In July 2015, the government announced it was planning to review the future of the Feed-in Tariff scheme. With the cost of solar panels plummeting, the government has previously spoken of their desire for solar to pay for itself, casting serious doubts over the future of the FiT scheme. Small solar farm funding has already been cut by the government and it seems almost certain that household solar funding will also be seriously hit.

The good news is that anyone who installs residential solar panels between now and December 2015 are guaranteed the feed-in tariff payments and they will be 'locked in' over 20 years regardless of what happens to the Feed-in Tariff scheme in the future.

So with the Feed-in Tariff coming to end and solar panel costs at a record low, if you are thinking about solar panels you will want to install sooner rather than later.



What is grid parity?

One of the main drawbacks for renewable energy sources is the cost of installation, the price of the technology and the amount of time it takes to recoup the investment. The FiT was introduced to mitigate against these factors and to make the investment more attractive. In time it is hoped that solar and wind technology will become so cheap and efficient that it will achieve what is called grid parity with fossil fuels.

Grid parity means that the costs of using and producing renewable energy are at least the same or less than that of fossil fuels. This has many benefits, not least the fact that it will encourage the take-up of renewable energy which will drive down the cost further, lower carbon emissions and it should reduce the chances of energy shortages in the future.


If you are interested in completing a Solar installation, complete the form at the top of the page and receive free, no obligation quotes to compare from local MCS accredited installers in your area.

To see how much your property could earn and save by installing solar panels, use our solar panel calculator.