How Can I Benefit From The Solar Feed In Tariff

The solar feed in tariff is a Government run scheme which acts as an incentive for those wishing to invest in renewable energy. The scheme is open to all, from landlords and homeowners, to businesses and schools.

It was first launched in 2010 and proved hugely popular, improving the industry and creating thousands of jobs.

The solar feed in tariff rate now stands at 21p/kWh for installations of 4kW and less, meaning homeowners can see an annual return of investment between 10% and 15%. The tariff adds further weight behind investing in solar and avoiding the rising prices of National Grid gas and electricity.

How does the tariff scheme work?

The feed-in tariff is linked to renewable technologies that generate electricity. In the solar market this is only photovoltaic panels – not solar thermal.

If you have solar panels installed, it’s imperative to have MCS accredited contractors complete the installation or you won’t receive the solar feed in tariff.

Once your solar system is installed and registered to the tariff, you’ll start receiving an income as the scheme pays for every unit of renewable electricity generated.

By registering your system before August 1 you’ll benefit from the higher rates of 21p/kWh over 25 years. Otherwise you risk having a reduced rate over just 20 years.

How much will I receive with the solar feed in tariff?

When calculating how much you’ll receive with the tariff rates, it will all depend on the size of the system and the direction the panels are facing. For the optimal returns you should have a south facing system.

The tariff rate at the moment is 21p/kWh for systems of 4kW or less. The export tariff, which is an extra bonus and pays for electricity sold to the National Grid, is currently 3.2p/kWh. With the amount of money saved on bills and both tariff rates, annual return of investment is now between 10% and 15%.

How will the tariff rates change in the future?

From August 1 the solar feed in tariff rates will be reduced from the current 21p rate to 16p. This means the new return of investment could be as little as 6% every year.

By installing and registering your panels before this date you guarantee the higher rate for 25 years, ensuring an improved return of investment.

Where does the solar feed-in tariff fund come from?

Payments for the tariff scheme are taken from energy bills and utility companies are contracted to pay up. Because of the scheme, Greg Barker, Energy Minister in the DECC, believes that £80 could be added to the household bills by 2020.

How do I get started with solar?

Solar panels are the option many homeowners are taking to reduce their bills and avoid high fuel prices. If you’re interested in the solar feed in tariff and benefits of renewable energy, then your next step is to receive quotes from local, vetted companies.


This is a series of posts written by lead generation company Quotatis. Quotatis are Europe’s most popular consumer matching service for the home improvement market and they offer up to four free solar panel quotes.