The Feed In Tariff scheme (FITs)

If you install an electricity-generating technology from a renewable or low-carbon source such as solar PV or wind turbine, the government's Feed-In Tariff scheme (FIT) could mean you get money from your energy supplier.

You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And of course you'll also save money on your electricity bill, because you'll be using your own electricity. To qualify for a free solar panel installation you agree that all electricity generated by the panels on your roof can be used by you for free so lowering the cost of your electricity bill and the income generated by the Feed-in Tariff scheme is collected by Ecovision which pays for the cost of the solar panel system.

About the scheme

Most domestic technologies (and larger systems up to 5 megawatts) qualify for the scheme, including:

solar electricity (PV) (roof mounted or stand alone)
wind turbines (building mounted or free standing)
hydroelectricity
anaerobic digesters
micro combined heat and power (CHP)

It is energy suppliers that will pay the FITs payments with the 'big six' energy suppliers required by law to provide these payments. Some smaller electricity suppliers may not offer FITs payments as it is not compulsory for them though many have opted to offer the payments.

The FIT payment benefit system breaks down in to 3 methods:

Generation tariff - the energy supplier will pay a set rate for each unit (or kWh) of electricity generated. Once the system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 25 years) and are index-linked.
Export tariff - A further 3.1p/kWh from the energy supplier is paid for each unit exported back to the electricity grid. 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.
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.