Feed in Tariffs (FiTs)
Designed to reward people with solar PV with a guaranteed annual income for all of the electricity which their system generates.
The scheme guarantees a minimum tariff for all electricity generated
by a system, as well as a separate Export Payment for electricity exported to the National Grid. There is also the additional saving of importing less electricity from the grid during daylight hours as this is offset by the electricity generated on-site.
In addition, installations connected to properties not meeting a minimum energy efficiency of level D as determined through an energy performance assessment and presented in an Energy Performance Certificate (EPC) will only be eligible for the flat Lower Rate, regardless of other factors. The rates are also reviewed on a quarterly basis dependent on the national deployment rate of installations.
long-term energy cost savings
FiT payments are made for a period of 20 years after which they cease. A saving on imported electricity will continue beyond this for the duration of the installation’s life.
Both the FiT and Export Payments are index linked to the Retail Price Index and will increase in line with inflation on the 1st April each year.