A Feed-in Tariff (FIT) is a UK government policy to encourage homeowners to install green energy systems, like solar panels or small wind turbines on their properties. It provides a guaranteed income for producing non-fossil fuel based electricity. The main idea is that the government promises to pay you a fixed price for every unit of electricity you generate and put back into the national grid.
When you install solar panels on your roof, they make electricity. First, you use this power for your own lights and appliances, which saves you money on your normal bill. If your panels make more electricity than you need at that moment, that extra power automatically flows out of your home and into the national grid. For that extra power you send to the grid, your energy company must pay you the fixed FIT price. This payment rate is often set high enough and lasts for a long time (20 years is common) to make sure you earn back the money you spent on the initial installation and make a profit.
By guaranteeing a price for many years, it takes the risk out of solar investment. It’s a very effective way to get many homeowners and businesses involved, quickly increasing the UK’s total amount of renewable energy.
If you are buying or selling a property with solar panels, or would like to know more about feed-in tariff transfers, our Solar PV Handover Package test and inspection will give you maximum peace of mind. Many home insurers now require proof of solar maintenance. We provide full service records to safeguard your policy.