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Feed In Tariff (FIT)

The Feed in Tariff commenced on 1 April 2010. The FIT is a significant new government financial incentive for renewable electricity projects up to 5MW in size, installed after 15 July 2009. It offers a payment for every unit of renewable electricity generated (a generation tariff), as well as an additional payment for every unit of electricity that is exported to the grid (an export tariff).

The government’s aim is that the FIT will offer a 12 to 20 year payback period on the capital cost of the renewable energy technology. With FIT payments guaranteed for 20 years (25 years for PV), most projects will be generating a profit for the user before the end of their FIT payments. It is expected that over the lifetime of the project the FIT will repay the initial investment, plus a 5 to 8% return.

The FiT is index linked and as a result of inflation tariffs were increased from 01 April 2011.

Fast track review of the Feed-in Tariff

DECC released the “consultation on fast-track review of Feed-in Tariffs for small-scale low carbon electricity” on 18 March 2011.

Full details can be found at:


The consultation proposes a drastic reduction in the tariff levels for all new PV installations larger than 50kW schemes. The new proposed rates are:

  • 19p/kWh for 50kW to 150kW
  • 15p/kWh for 150kW to 250kW
  • 8.5p/kWh for 250kW to 5MW and stand-alone installations

The tariffs that would otherwise apply from 1 April 2011 are:

  • 32.9p/kWh for 10kw to 100kw
  • 30.7/kWh for 100kw to 5MW and stand-alone installations

The new rates are proposed to take account from 1 August 2011.

Comprehensive review of the Feed in Tariff

A comprehensive review of the Feed-in Tariffs will take place over the course of 2010, with the results due to be announced at the end of the year. There is the potential for tariffs for all technologies and scales to be changed as a result of this review. Changes to tariff levels will be implemented from April 2012. Click here to learn more about the comprehensive review of the FiTs on DECC’s website.

More details are available from the Energy Saving Trust Website, click link below.