Feed In Tariffs (FITs) are a UK Government scheme which makes payments to those who generate their own electricity using renewable sources. The payments are made directly from your energy supplier to you. To qualify, the installer and the products must both be certified under the Microgeneration Certification Scheme (MCS). Your property must also have an Energy Performance Certificate rating of Band D or above.
There are 3 ways that you can benefit if you are eligible for FITs:
Generation Tariff – your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 20 years) and are index-linked.
Export Tariff -you will get a further 4.64p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don’t use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate (only systems above 30kWp need to have an export meter fitted, and a domestic system is unlikely to be that big).
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 amount you save will vary depending how much of the electricity you use on site.