Feed-In Tariffs (also known as FITs) are the electricity part of what some people call Clean Energy Cash back, a scheme that pays people for creating their own “green electricity”.
The tariffs have been introduced by the Government to help increase the level of renewable energy in the UK towards our legally binding target of 15% of total energy from renewables by 2020 (up from under 2% in 2009).
How do the Feed-In Tariffs help?
The Tariffs give three financial benefits:
- A payment for all the electricity you produce, even if you use it yourself
- Additional bonus payments for electricity you export into the grid
- A reduction on your standard electricity bill, from using energy you produce yourself
Who are they for?
Broadly speaking, the FITs are for everyone, including households, landlords, businesses and even organisations such as schools and care homes. There are however different tariffs for commercial and residential customers with the focus of funding being on domestic installations.
