Solar Feed in Tariff Explained

The Government’s feed-in tariff pays homeowners with solar PV installations for every unit of renewable electricity produced. The scheme offers a minimum payment, which is known as the generation tariff, and an additional payment, known as the export tariff.

These payments made are on top of the money already saved monthly on energy bills. This tariff rate will depend on when the system is installed, but you’ll be guaranteed the same payment for 20 years.

The current feed-in tariff rate for installations is:

  • 15.4p/kWh for solar panel installations on a residential property

As well as this fixed payment, your system will also receive 4.5p/kWh for every unit sent to the National Grid. This is excess energy that’s not needed in your home.

In order to be eligible for the feed-in tariff, your system would have to have been installed after July 2009. The installer and the equipment will also have to be MCS accredited.

The current feed-in tariff rate for installations is:

  • Property owners generate a fixed income from the feed-in tariff
  • These rates are guaranteed for 20 years
  • The export tariff also pays for excess electricity
  • On top of this you’ll reduce annual energy bills
  • On average return of investment between 10% and 15%