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Feed-In Tariffs: the old solar payment scheme
Feed-In Tariffs, often called FITs, were a UK government scheme that paid people for generating electricity with solar panels and sometimes for exporting surplus power to the grid. The scheme was introduced to encourage more homes and businesses to install renewable energy.
Under FITs, you could receive money for two things: the electricity your system produced, and any excess electricity you exported. This meant even if you used a lot of your own solar power, you could still be paid for generation.
The scheme is now closed to new applicants. If you signed up before it ended, you may still receive FIT payments for many years, depending on your original agreement.
What is solar export?
Solar export refers to the electricity from your solar panels that you do not use at home and send back into the grid. In the UK, this exported electricity can earn you a payment through an export tariff.
Unlike FITs, solar export is usually separate from generation payments. You are typically paid only for the electricity you export, not for every unit your panels produce.
This makes solar export more closely tied to how much unused electricity your household actually sends out. The more surplus power you export, the more you may earn.
How they differ
The main difference is that Feed-In Tariffs were a broader support scheme, while solar export is just payment for exported electricity. FITs often included both generation and export payments, whereas modern export tariffs usually cover export only.
Another key difference is availability. FITs are closed to new customers in the UK, but export tariffs are still available through current schemes such as the Smart Export Guarantee, also known as SEG.
FIT payments were generally based on the size of your system and its generation output. Export tariffs are usually based on actual exported units, which can make them more dependent on your energy use patterns at home.
What this means for UK homeowners
If you already have a FIT contract, you may continue to benefit from it. Your payments will depend on the terms you signed up to and whether your system is still eligible.
If you are installing solar panels now, you will usually look at export tariffs rather than FITs. It is worth comparing rates, whether export is measured by a smart meter, and how much of your solar power you expect to use yourself.
In simple terms, FITs were the original all-in-one incentive, while solar export is the modern payment for unused solar electricity sent to the grid. Understanding the difference can help you judge the financial return from solar panels more accurately.
Frequently Asked Questions
Feed-In Tariffs vs solar export difference refers to comparing two ways solar owners are paid for electricity they send to the grid. A feed-in tariff usually pays a fixed rate for each unit exported, while solar export payments depend on the export arrangement and market or retailer rates. The key difference is whether the payment is fixed and scheme-based or variable and retailer-based.
Feed-In Tariffs vs solar export difference affects both export earnings and bill reductions. A feed-in tariff can provide predictable income for exported solar power, while a solar export payment may be lower or vary over time. In both cases, using more solar power at home usually saves more than exporting it.
The main difference in Feed-In Tariffs vs solar export difference for homeowners is how exported electricity is valued. Feed-in tariffs are typically fixed-rate incentives, while solar export arrangements pay based on the retailer, plan, time of day, or wholesale conditions. This changes how much you earn for excess generation.
Feed-In Tariffs vs solar export difference matters because export income can influence how quickly a solar system pays for itself. Higher or guaranteed export rates improve returns, while lower export rates reduce the value of excess generation. Self-consumption still usually has the biggest impact on payback time.
In Feed-In Tariffs vs solar export difference, feed-in tariff payments are usually calculated by multiplying exported kilowatt-hours by a fixed cents-per-kWh rate. Solar export payments may use a flat export rate, a time-based rate, or a retailer-specific formula. The billing method depends on your plan and market rules.
Yes, Feed-In Tariffs vs solar export difference can change over time because tariff programs may be phased out, reduced, or replaced, while solar export rates can be revised by retailers or market conditions. This means the value of exported solar is not always permanent. Checking your plan regularly is important.
Eligibility for Feed-In Tariffs vs solar export difference payments usually depends on having a grid-connected solar system, a compliant meter, and a retailer or utility that offers export payments. Some older feed-in tariff schemes may have closed to new customers, while export rates are more commonly available under current plans.
To access Feed-In Tariffs vs solar export difference benefits, you typically need to install an eligible solar system, ensure your meter can measure exports, and sign up with a retailer or scheme that offers the relevant payment. For older feed-in tariffs, eligibility may depend on the installation date and local program rules.
Feed-In Tariffs vs solar export difference generally requires a meter that can separately measure electricity imported from and exported to the grid. In many areas, a smart meter is needed for accurate export billing. Without export measurement, you may not receive the correct payment.
Feed-In Tariffs vs solar export difference usually pays less than the value of using solar electricity directly at home. Self-consumption avoids buying power at retail rates, which is often worth more than exporting power for a tariff or export credit. For most households, maximizing self-use gives the best returns.
Yes, batteries can improve Feed-In Tariffs vs solar export difference outcomes by storing surplus solar for later use instead of exporting it immediately. This can increase self-consumption and reduce reliance on lower export payments. Whether a battery is worthwhile depends on your tariff, export rate, and usage pattern.
Time-of-use rates can significantly affect Feed-In Tariffs vs solar export difference because export value may be higher at peak times and lower at off-peak times. Traditional feed-in tariffs are often fixed, while newer export plans may vary by time. This means when you export can matter as much as how much you export.
If your solar system exports more power in Feed-In Tariffs vs solar export difference, you may earn more export credits or tariff payments, but only up to the rules of your plan. Excess export does not always mean high profit if the export rate is low. Oversizing without enough self-use can reduce overall value.
Feed-In Tariffs vs solar export difference affects solar retailers because they must offer export terms that remain competitive and compliant with regulations. Some retailers use export rates as a selling point, while others may structure plans to favor certain usage profiles. Customers should compare both import and export charges.
Whether Feed-In Tariffs vs solar export difference payments are taxable depends on local tax laws and whether the system is used personally or as part of a business. Some residential export earnings are not taxed, while commercial solar income may be treated differently. It is best to check local tax guidance.
Yes, switching providers can improve Feed-In Tariffs vs solar export difference results if another retailer offers better export rates, lower usage charges, or a more suitable tariff structure. Always compare the total bill, not just the export payment. A higher export rate may be offset by higher electricity prices.
Feed-In Tariffs vs solar export difference can influence solar system design because systems may be sized for self-consumption, export revenue, or both. A generous feed-in tariff may justify more export capacity, while a lower export rate often favors batteries or load shifting. Design choices should match the tariff structure.
Feed-In Tariffs vs solar export difference rules vary by region because energy regulators, utilities, and governments set different export programs and payment rates. Some regions have legacy feed-in tariffs, while others only offer retailer export credits. Local policy determines what is available and how much you are paid.
When comparing Feed-In Tariffs vs solar export difference offers, look at the export rate, whether it is fixed or variable, any daily supply charges, usage rates, contract length, and restrictions on system size. The best offer is usually the one with the highest overall financial benefit, not just the highest export price.
Feed-In Tariffs vs solar export difference is important when buying solar because it affects how much value you get from excess generation. A system with strong export payments can be more attractive, but lower modern export rates may make self-consumption and batteries more important. Understanding this helps you choose the right system size and plan.
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