Who pays for the Feed-in Tariffs?

The system is administered by the official regulator Ofgem, and uses money from a levy on all electricity sales, collected and distributed by the licensed electricity suppliers as described here. Therefore if you install a renewable energy system you get a treble benefit:

  • Your income from the Feed-in Tariff
  • An extra income for every kWh you export
  • Because you are producing some of your own power, you will buy less electricity and therefore pay less for it (and so less levy)

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