Feed-in Tariffs: everything you need to know about the FiT scheme

1. About the FiT scheme

The Feed-in Tariff (FiT) scheme was a UK Government initiative designed to encourage people to generate their own green electricity at home. Eligible customers who installed a low-carbon, renewable electricity generator (such as solar panels) receive tax-free payments 4 times a year.

The scheme closed to new applications in 2019, but anyone who applied and was accepted before then will continue to receive FiT payments for the duration of their contract. If you buy a house with solar panels that are registered to the FiT scheme, ownership can be transferred so you can claim payments for the rest of the contract.

How does FiT work?

Customers who signed up to the FiT scheme before it closed receive 4 payments each year, calculated using meter readings submitted to their supplier.

Each FiT payment includes:

• Generation tariff: a payment for the total amount of electricity generated.

• Export tariff: a payment for the electricity sent back to the National Grid.

Electricity generated at home can also be used directly, helping to lower energy bills.

The FiT scheme covered homes in England, Scotland, and Wales, but not Northern Ireland. 

Who is responsible for the FiT scheme?

The FiT scheme is overseen by the energy regulator, Ofgem. However, payments are issued directly by energy suppliers, known as FiT licensees.

See a full list of FiT licensees on Ofgem's website.

Has the FiT scheme closed?

Yes. The FiT scheme closed to new applicants on 1 April 2019. If you applied and were accepted before that date, payments will continue for the remainder of your contract.

For more information, please visit Ofgem’s website.

If you are looking to register a renewable system for the first time, you can apply for the Smart Export Guarantee (SEG), which replaced the FiT scheme.

Can I sell my Feed-in Tariff?

Some third-party companies offer an upfront lump sum of cash in exchange for receiving your ongoing Feed-in Tariff payments. This practice is often described as 'selling your Feed-in Tariff.'

In most cases, the total value of your FiT payments over time will be higher than the lump sum offered. You can read more about how solar buyback schemes work on the Which? website.

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2. SEG vs FiT

What is SEG?

The Smart Export Guarantee (SEG) replaced the FiT scheme in January 2020. Like FiT, it rewards customers for exporting renewable electricity back to the National Grid, but there are a few key differences:

• Tariff rates: FiT offered standard rates across all energy suppliers. With SEG, rates vary depending on your supplier. Find out more about OVO's SEG tariffs.

• Payment calculation: FiT payments are based on both generation and export. SEG payments are based only on the electricity you export back to the grid. A smart meter is required to measure exact export readings automatically.

What types of energy generation are eligible for SEG?

You could claim SEG payments if you use any of the following technologies to generate electricity:

• Solar panels (PV)

• Onshore wind turbines

• Anaerobic digestion (AD)

• Hydro power

• Micro combined heat and power (or CHP)

Learn more about the Smart Export Guarantee.

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3. Payments

How much can I earn from FiT?

Earnings depend on the type of renewable technology installed, system output, and current FiT rates. Savings on domestic electricity bills also contribute to overall financial benefit.

To view current rates and details, read the guide to FiT rates on the Which? website. Note that this only applies to accounts registered before 1 April 2019.

When will I get my FiT payments?

FiT payments are calculated 4 times a year, based on readings submitted in March, June, September, and December. Generation meter readings need to be submitted by the end of these months to process quarterly payments, which are issued around 8 weeks later.

Payments are made directly into a nominated bank account. Please note that payments cannot be made by cheque, into a building society, or directly into an OVO energy account.

How are my FiT payments calculated?

FiT payments consist of two parts:

1. Generation tariff: Calculated using your meter readings and the generation rate assigned when your scheme was registered.

2. Export tariff: Calculated in one of two ways:

   • Deemed export: An estimated percentage of your total generated units (currently 50% for standard systems, or 75% for hydro systems).

   • Metered export: Measured directly using an export meter or smart meter, ensuring payments reflect actual export amounts.

Will my payments go up with inflation?

Yes. On 1 April each year, Feed-in Tariff rates are adjusted in line with the Consumer Price Index (CPI) to account for inflation. For complete tariff tables, visit Ofgem's website.

Are FiT payments taxable?

Feed-in Tariff payments are tax-free provided the electricity generated is used for domestic purposes.

If the property is registered for VAT, VAT is added to export payments. This must be declared during account registration to ensure correct processing.

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4. Meter readings

When do I need to give readings from my generation meter?

Readings are due in March, June, September, and December. Email reminders containing a submission link are sent at the start of these months. Smart meters submit readings automatically. See this meter read guide for help taking an export meter reading from your smart meter. 

What happens if I forget to take a meter reading?

If a reading is missed, the payment for that quarter cannot be processed at the time. Submitting a reading during the next cycle ensures the balance for the missing period is backdated and included in the subsequent payment.

What happens if I don’t verify my meter?

Under Ofgem regulations, FiT licensees check generation meters at least once every 2 years. We'll contact you when your meter verification is due.

Verification requires submitting a clear photo of the meter showing both the serial number and the current reading. Payments are paused if verification photo proofs are not provided.

What is a metered export tariff?

A metered export tariff pays for every kilowatt hour (kWh) of electricity exported to the National Grid.

Accounts on metered export tariffs require readings from both generation and export meters when requested.

Who should I contact if I’m having problems with my generating equipment?

You’ll need to speak to your installers. They’ll be able to help with all technical and faulty equipment questions. It’s really important that you let us know if they change your generation meter or any of your equipment, as this could affect your payments.

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5. Switching, moving and account changes

How do I switch my existing FiT account to OVO, and how long does it take?

Your energy supplier and your FiT licensee can be two separate companies under different contracts. If you switch your domestic electricity supply to OVO, your FiT account will automatically remain with your current supplier unless you choose to move it.

If you already receive FiT payments from another supplier and would like to move your FiT account to OVO, you can transfer it by completing our online FiT Switch Form.

The transfer takes 28 working days from the date your application is received. On your switch date, we will ask for a generation meter reading. This reading acts as the final reading for your previous supplier and the opening reading for your new OVO FiT account. Your previous supplier will pay you up to the switch date, and OVO will pay you from that point onward.

If I switch my FiT account to OVO, will my rates change?

Your rates will stay exactly the same for both generation and export. Feed-in Tariff rates are regulated by Ofgem, so moving your FiT account to OVO will not affect the payments you receive.

I’m moving house. What happens to my FiT account?

When selling a property, solar panels are usually included in the sale. The new owner needs to complete our online Change of Ownership Form to transfer the FiT account and receive payments from the completion date. Final meter readings must be submitted upon moving out.

If solar panels are removed and reinstalled at a new property, they are no longer eligible for FiT payments. However, you can apply for SEG for the new setup.

I’m moving into a home with solar panels. Can I apply for FiT?

If your new home has solar panels, check with the seller to confirm if the system is registered to FiT and who the designated FiT licensee is.

If the system is registered with OVO, complete a Change of Ownership Form to transfer the account.

I’ve inherited an installation registered to FiT. How do I claim payments?

If you have inherited an installation where OVO is the FiT licensee, please complete the online FiT Inheritance Form to transfer the account to your name.

Can I make changes to my system, and will it affect my payments?

Systems can be expanded to generate extra energy for domestic use, but extended capacity will not be eligible for FiT payments. Full guidance is available on Ofgem's website.

Please notify us of any system modifications by emailing [email protected].

What if I have a battery installed?

Verification is required to ensure exported energy originates from the renewable system rather than external sources. If a battery storage system is installed, a detailed diagram showing the connection path from the panels to the installation must be provided.

Need more help?

Call us on 0330 102 7421 (Monday to Friday, 9am to 5pm). Outside these hours, email [email protected] and our team will get back to you within 5 working days.