Feed-in tariffs
Under this scheme, energy suppliers must make regular payments to householders and communities in Great Britain who generate their own electricity from renewable or low-carbon sources such as solar panels or wind turbines. The scheme closed to new applicants from 1 April 2019.1Feed-in-tariffs - FAQ Scheme Closure, December 2018, The tariffs are paid for every kWh of electricity you generate using a renewable electricity system. They are applicable to households, landlords and businesses. Tariffs can change as often as every three months. Comprehensive tables showing rate changes are available from Ofgem.2 Feed-in tariffs (FITs) provide three benefits.
•You get a payment for electricity produced, even if you use it yourself. Tariffs are paid for up to 20 years and vary depending on the type and scale of the installation. FITs payments are exempt from income tax. The eligibility period starts on the eligibility date and lasts for:
◦solar photovoltaic (PV) – 20 years (25 years for those with an eligibility date before 1 August 2012);
◦wind – 20 years;
◦hydro – 20 years;
◦anaerobic digestion – 20 years;
◦micro-combined heat and power (micro-CHP) – 10 years.
•You get additional payments for electricity exported to the grid.
•Your electricity bills are reduced as you use energy produced by the renewable technology.
Where ownership of a property changes, ownership of the generating technology also changes, and the FITs payments transfer to the new occupier.