Feed In Tariffs Explained
Feed-in Tariffs (FITs) are a financial incentive created for renewable energy generators with an install capacity below 5MW. Developed by the Department of Energy and Climate Change (DECC), FITs is designed to encourage individuals and businesses in the UK to generate renewable energy.
Through the feed in tariff scheme a solar PV install generates both an income and savings.
The Generation Tariff: You earn a fixed income for every kilowatt hour of electricity you generate whether you use yourself in your property or export it to the grid.
The Export Tariff: You earn an additional fixed income for every kilowatt hour of electricity you sell back to the grid.
Electricity 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.