Solar Glossary

Feed-In Tariff (FIT)

The Feed-In Tariff was a UK government scheme (closed to new applicants in 2019) that paid solar panel owners for every unit of electricity their system generated, regardless of whether it was used or exported.

Feed-In Tariff (FIT) explained

The Feed-In Tariff (FIT) was the UK government's main financial incentive for small-scale renewable energy from 2010 to 2019. It paid solar panel owners two separate rates:

  • Generation tariff: a payment for every kWh your panels produced, whether used in your home or not (typically 3–43p/kWh depending on installation date)
  • Export tariff: an additional payment (typically 3–5.5p/kWh) for electricity exported to the grid (often assumed at 50% of generation without actual measurement)

The FIT scheme closed to new applicants in April 2019 and was replaced by the Smart Export Guarantee (SEG). However, existing FIT recipients continue to receive their payments for their full 20-year term. Early adopters (2010–2012) who locked in rates of 41–43p/kWh are receiving excellent returns.

If your home has an existing FIT contract:

  • Continue submitting generation meter readings to your FIT licensee (usually quarterly)
  • Payments are index-linked to RPI (Retail Price Index), so they rise with inflation
  • Adding battery storage may slightly affect your FIT payments — check with your licensee before adding storage

For new solar installations in the UK, the equivalent scheme is the Smart Export Guarantee (SEG), though rates are significantly lower than the original FIT generation tariffs.

How this affects your solar decision

If your home already has solar with a FIT contract, maximising generation readings is important. If you're installing new solar, the SEG is the relevant scheme. Use the Solar Savings Calculator to model your export income.

Model FIT or SEG export income in your solar savings calculationSolar Savings Calculator

Related terms

Smart Export Guarantee (SEG)The Smart Export Guarantee is the UK scheme that requires energy suppliers with 150,000+ customers to pay solar panel owners for electricity they export to the grid.Export RateThe export rate is the price per kWh you are paid for solar electricity you send back to the grid, which is typically much lower than the retail price you pay to import electricity.Net MeteringNet metering is a billing arrangement (common in the US and some other countries) where solar panel owners are credited for the full retail value of electricity they export to the grid, which offsets their import charges.Self-ConsumptionSelf-consumption is the proportion of your solar-generated electricity that you use directly in your home, rather than exporting to the grid.
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