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Feed-In Tariffs: the original solar incentive
Feed-In Tariffs, often called the FIT scheme, were designed to reward UK homeowners for generating renewable electricity. Under the scheme, you were paid for every unit of electricity your solar panels produced, whether you used it yourself or not.
The FIT scheme also included an export payment for electricity sent back to the grid. This made it one of the most attractive support systems for early solar adopters, especially when solar panel costs were much higher than they are today.
Can new solar installations still get Feed-In Tariffs?
In most cases, no. The UK Feed-In Tariff scheme closed to new applicants in 2019, so new solar installations cannot usually join it now.
Some households still receive FIT payments if they were registered before the scheme ended. For new systems, the main option is now the Smart Export Guarantee, often shortened to SEG.
How solar export payments work today
The Smart Export Guarantee pays homeowners for surplus electricity exported to the grid. Unlike the old FIT scheme, you are only paid for electricity you actually export, not for all the power your panels generate.
Export rates are set by energy suppliers rather than by the government. That means the amount you earn can vary a lot depending on the tariff you choose, the supplier, and whether your system includes a smart export meter.
Which is better for a new solar system?
For new installations, solar export payments are the practical replacement for Feed-In Tariffs. They are usually less generous than the old FIT payments were, but they still provide a useful income stream for surplus electricity.
The real financial benefit of modern solar often comes from using more of your own power at home. Every unit of electricity you consume directly can reduce your bills, which can be worth more than exporting it.
What UK homeowners should consider
If you are planning a new solar install, focus on the total saving rather than export income alone. A system that helps you use more electricity during the day, or pairs well with a battery, may offer better long-term value.
It is also worth comparing SEG tariffs carefully, because rates and terms can differ widely. For many households, the best outcome is a mix of lower bills from self-consumption and a modest payment for exported energy.
Frequently Asked Questions
Feed-In Tariffs are a legacy payment scheme that paid solar owners for generating electricity and, in some cases, exporting it, while solar export usually refers to a newer export payment for surplus electricity sent to the grid. For new solar installations, the export payment is typically the relevant mechanism, not a full Feed-In Tariff.
No. Feed-In Tariffs vs solar export for new solar installations are not the same because Feed-In Tariffs were broader incentives, whereas solar export is usually a payment only for the electricity your system exports to the grid.
Eligibility depends on the scheme and country, but new solar installations are often not eligible for legacy Feed-In Tariffs and instead may qualify for a solar export tariff or export payment. The exact rules depend on the utility, regulator, and installation date.
New solar installations usually cannot access old Feed-In Tariff schemes if those schemes have closed to new applicants. They may still receive a solar export payment if the local market or utility offers one.
Both can improve payback time by creating income from your solar system, but a Feed-In Tariff generally offered more predictable revenue. Solar export payments may be lower or variable, which can make payback calculations more conservative.
Feed-In Tariffs were often based on fixed rates per kilowatt-hour for generation and sometimes export, while solar export is typically calculated only on the kilowatt-hours exported to the grid. The rate may be fixed, variable, or linked to market prices.
Yes, both can depend on system size. Many schemes cap eligibility or set different rates based on installation capacity, and export payments may also vary depending on whether the system is small residential or larger commercial.
Yes. Batteries can reduce the amount of electricity exported, which may lower export payments. Under a Feed-In Tariff, the financial effect depends on whether the scheme paid for generation, export, or both.
Typically you need proof of installation, system specifications, commissioning details, meter information, and registration with the relevant utility or scheme operator. Requirements vary by jurisdiction and whether the system applies for a legacy Feed-In Tariff or a current export tariff.
Feed-In Tariffs often lasted for a fixed term such as 10 to 25 years under the original scheme rules. Solar export arrangements may continue as long as the system remains connected and compliant, but the rate or contract terms can change when agreements expire.
They may be taxable depending on local tax law and whether the system is residential or commercial. Some jurisdictions treat these payments as taxable income, while others provide exemptions or different treatment for small systems.
In some places, no, because the rules may allow only one compensation method. In others, export payments and net metering can coexist in different forms, but the utility’s tariff structure determines whether combining them is possible.
For new solar installations, the better option depends on available programs, tariff rates, and your self-consumption pattern. A Feed-In Tariff was often more generous historically, but a solar export payment may be the only current option for new systems.
They can influence whether you size the system for maximum self-consumption or maximum export. If export payments are low, designing for higher on-site use and battery storage may be more attractive than relying on exported electricity.
Many schemes require a certified import-export meter or a smart meter that can separately measure electricity drawn from and sent to the grid. The exact meter requirement depends on the local tariff and the utility’s technical standards.
Yes. These schemes are highly regional and depend on national policy, local utility rules, and regulatory updates. A Feed-In Tariff may exist in one region while another region only offers a solar export payment.
Legacy Feed-In Tariffs may be locked in for the contract term, though some schemes have indexation or degression rules. Solar export rates are more likely to change for new applicants or when contracts renew, depending on local policy.
Yes, but ownership and meter-account details must match the scheme rules. The party entitled to the payments is usually the system owner or the account holder specified in the registration process.
Compare expected annual generation, self-consumption, export volume, tariff rate, contract length, and any installation or maintenance costs. A good comparison also includes inflation, degradation, and any changes in export pricing over time.
Check whether a legacy Feed-In Tariff is still open to new applicants, the current export rate, contract terms, meter requirements, tax treatment, and whether batteries or self-consumption strategies would improve your returns. The best choice depends on local rules and your usage profile.
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