Feed in tariff
The feed-in tariff (FIT) was a government scheme paying owners of small renewable generators for the power they produced, closed to new applicants on 1 April 2019.
What it is
The Feed-in Tariffs (FIT) scheme started on 1 April 2010 and is administered by Ofgem. It paid people and businesses with accredited solar panels, wind turbines and similar small installations for the electricity they generated and exported. It closed to new applicants on 1 April 2019. If you installed after that, you would look at the Smart Export Guarantee instead.
Where you will see it
If your premises has an older installation, you may receive payments from your FIT licensee (an electricity supplier). Support lasts between 10 and 25 years depending on technology, size and commissioning date. The payments are based on meter readings you submit.
Who pays
Licensed suppliers make the payments, and the costs are shared across all suppliers through a process called levelisation, in proportion to market share. Those costs are ultimately recovered from electricity customers, so the scheme is part of the overall cost of supplying power.
Why it matters
When you buy or lease premises with solar panels, check whether they are still on a FIT, because the right to the payments may need to be transferred to you. If you are the new owner, tell the FIT licensee and ask what paperwork they need.
Example
A hypothetical installation accredited in 2016 with a 25-year term would still be paid until 2041. A building bought in 2030 would still have around 11 years of payments left, which is worth knowing when valuing it.
Related terms
See selling surplus solar power, commercial solar panels and renewables obligation.
Common questions on this topic
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.