Learn how it works, what is pays and who is eligible

The complete guide to Feed-in Tariffs (FITs)

The energy that can be harnessed from natural sources and is constantly replenished is called renewable energy. Sometimes known as clean energy or green energy, renewable energy is generated by the likes of the sun and the wind.

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Why Feed-in Tariffs were introduced

Feed-in Tariffs (FITs) were introduced a decade ago as a government scheme to encourage consumers to use environmentally friendly technologies such as solar panels, wind turbines and hydropower to produce their own energy.

Households or small businesses use the green energy they produce, meaning the costs to run a home or business premises are lessened. Therefore, money can be saved through reduced energy bills.

Additionally, the excess electricity produced by participants of the Feed-in Tariffs scheme can be fed back into the national grid. So, through the scheme, participants are paid for the surplus green energy they produce.

This positively impacts the environment because it increases the share of renewable energy that powers homes from the national grid, whilst giving homes and businesses involved with the Feed-in Tariffs scheme a financial incentive to contribute.

Financial returns from Feed-in Tariffs

The returns from Feed-in Tariffs have changed over the years. When the scheme launched, initial setup charges were offset by attractive financial returns.

The payments that any typical households can expect from Feed-in Tariffs have since reduced, having been impacted by cuts. However, in parallel, renewable technologies have become more reasonably priced.

Tariffs and payments are typically managed by larger energy suppliers, who are required to participate in the scheme by law. Some smaller energy suppliers may not have Feed-in Tariffs available as an option.

To get a better idea of the investment and potential savings you could make, you can use online calculators from Energy Saving Trust.

If the Feed-in Tariffs scheme is not an appropriate choice for you, a range of other government incentive schemes and funding options for installing low carbon technologies are also available.

FIT payments

Changes to the scheme

The Feed-in Tariffs scheme stopped accepting new applications on 31 March 2019. If your renewable technology was installed and certified before this date, applications could be made until 31 March 2020. However, the scheme no longer accepts new applications.

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