How the scheme works

If you are eligible to receive the FIT then you will benefit in 3 ways:

1. Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV).

2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.

3. Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

Example of how the Feed-in Tariff works

As an example, a typical domestic solar electricity system, with a rated size of 2 kWp could earn around:

• £700 per year from the Generation Tariff
• £25 per year from the Export Tariff
• £110 per year reduction in current electricity bills.

This gives a total saving of around £830 per year.

This assumes 50% of the electricity generated is exported, this figure will vary.