Example of how the feed-in-tariff works

The average house in the UK uses 3,500 kWh of electricity. A solar electricity system consisting of 18 panels will generate 3,434kWh per year.  The example below shows how much you would receive by installing this sized solar system.

The feed-in-tariffs (FITs), also known as the Clean Energy Cashback Scheme, has been running since April 2010.  Under this scheme, your energy supplier will make regular payments to you for generating your own electricity, regardless of whether it is used. The scheme guarantees a minimum payment for all electricity generated by the system. You are also paid for all solar electricity exported to the national grid. Alternatively, if you use the solar electricity in your home, your electricity bill will decrease.

The tariffs are tax free, linked to inflation and last for 25 years.

How the feed-in-tariff works

Generation tariff

Your electricity supplier pays you for generating solar electricity, regardless of whether it is used. A set rate is paid by your energy supplier for each unit (or kWh) of electricity you generate. You will continue to receive this tariff for 25 years. The rate is 21p per kWh for standard domestic systems retrofitted to a property.

Export tariff

If your system is producing more electricity than you need, or when you can't use it, you will receive a further payment from you energy supplier. The rate is 3.1p per kWh.

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 typical price of electricity is 13p per kWh.