What is the Feed-in Tariff (FITs)?
The Feed-in Tariff (FITs) is a financial incentive introduced specifically to encourage private individuals and organisations to install electricity generation in their homes, businesses, farms and community buildings.
As the owner of an eligible renewable energy system, you will be paid for all the electrical energy generated whether the energy is used or not. This payment will be provided from an electricity supplier of your choice, which does not have to be the energy supplier that you normally pay your energy bills to.
Unused or surplus energy can be fed back into the electrical supply network. You will receive a supplementary payment called an Export Tariff. The tariff payments are both TAX FREE and linked to the Retail Price Index (RPI) to ensure that they are not devalued by inflation. They are also guaranteed by the Government, however, they are subject to in-year change.
There are three financial benefits from FITs:
Generation Tariff - the electricity supplier of your choice will pay you for each unit of electricity (called kilowatts) you generate whether you use the energy or not
Export Tariff - any surplus electricity generated will be automatically exported back to the energy grid and you will receive an additional payment per unit
Energy Bills Savings - you won’t have to import as much electricity from your supplier because a proportion of what you use you will have generated yourself, you will see this impact as a reduction in your electricity bill
To find a contractor that can help install your renewable energy system, use our Find Contractors search facility.