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The Feed-in tariff

The feed-in tariff is made up of three elements:

  • A fixed payment from your electricity supplier for every kilowatt hour (kWh) your system generates. This is called the generation tariff.
  • A guaranteed price for any surplus electricity that you do not use on site, and export to the grid. This is called the export tariff and will also be paid by your electricity supplier. For small installations this will be deemed to be half of what you generate.
  • In addition, as you use electricity generated on site you will need less from the national grid – so your energy bill will be lower.

The rate is indexed to the retail price index for the life of the tariff. It is tax-free for domestic installations which generate electricity mainly for their own use.

If you install a solar PV system, the UK Government’s Feed-In Tariffs scheme (FITs) could mean that you get money from your energy supplier. You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And of course you’ll also save money on your electricity bill, because you’ll be using your own electricity. Take a look at these two government sites to find out more infomation.

Energy Saving Trust


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