What are Feed-In Tariffs?

Feed-In Tariffs are payments to ordinary energy users for the renewable electricity they generate

Feed-In Tariffs (also known as FITs) are the electricity part of what some people call Clean Energy Cashback, a scheme that pays people for creating their own “green electricity”. The second part of the scheme is the Renewable Heat Incentive, a similar measure for heat.

The tariffs have been introduced by the Government to help increase the level of renewable energy in the UK towards our legally binding target of 15% of total energy from renewables by 2020 (up from under 2% in 2009). For more information on the regulatory aspects, see our page on Tariff Regulations.

How do the Feed-In Tariffs help?

The Tariffs give three financial benefits:

  • A payment for all the electricity you produce, even if you use it yourself
  • Additional bonus payments for electricity you export into the grid
  • A reduction on your standard electricity bill, from using energy you produce yourself

Read more about How the Tariffs Work.

Who are they for?

Broadly speaking, the FITs are for everyone, including households, landlords, businesses and even organisations such as schools and care homes.

To see how specific individuals and organisations can benefit, from private residents to schools, have a look at the Ownergy website page on Who We Do It For.

What renewable energy systems are eligible?

Most forms of renewable electricity generation in all sizes up to 5 megawatts (enough for a large factory), which are supported by the Renewables Obligation. There is a whole chapter on eligibility with lots more information.

Do they cover heating?

No; that will be covered by the Renewable Heat Incentive – the Feed-In Tariffs’ dashing young brother.

We used the word ‘dashing’ because it is the first of its kind in the world and we are very excited about it. And we used the word ‘younger’ because it does not go live until April 2011. We have a site just like this one, which can answer all the questions you could possibly ask about the Renewable Heat Incentive.

Do you have a guide I can download?

Yes we do! …courtesy of our parent company Ownergy. Their Simple Guide to the Renewable Energy Tariffs covers both the Feed-In Tariffs and the Renewable Heat Incentive and is 5.6mb in size.