What is Feed-in Tariff?
A payment made to homeowners for excess solar electricity exported to the national grid.
Quick Answer
The UK introduced the Smart Export Guarantee (SEG) in 2020, requiring licensed electricity suppliers to offer export payments for small-scale generation. Rates typically sit around 13–15p per kWh with the best tariffs. The scheme applies to MCS-certified installations up to 5MW. Popular suppliers offering competitive export rates include Octopus Energy, British Gas, and EDF.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Feed-in Tariff Explained
A feed-in tariff (FiT) is a payment mechanism where electricity suppliers pay homeowners for surplus renewable electricity exported to the grid. The tariff rate is set by individual suppliers and may vary. Feed-in tariffs provide a financial incentive for small-scale renewable generation and help homeowners earn money from solar electricity they don't use themselves. The term is sometimes used interchangeably with 'export payment' or 'clean export premium'.
How Does Feed-in Tariff Work in the UK?
The UK introduced the Smart Export Guarantee (SEG) in 2020, requiring licensed electricity suppliers to offer export payments for small-scale generation. Rates typically sit around 13–15p per kWh with the best tariffs. The scheme applies to MCS-certified installations up to 5MW. Popular suppliers offering competitive export rates include Octopus Energy, British Gas, and EDF.
Frequently Asked Questions
How much can I earn from the feed-in tariff in the UK?
Typical UK export payments under the SEG are around 13–15p per kWh. A 4kWp system might export 1,500–2,000 kWh per year, earning £200–£300 annually.
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John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He researches every battery and inverter brand against manufacturer datasheets, MCS and Ofgem data, and feedback from the MCS-certified installers in our directory before publishing.