Feed-in Tariff (FIT): Legacy Scheme Explained

The Feed-in Tariff (FIT) was the UK's most successful solar incentive. It closed to new applicants on 31 March 2019, but hundreds of thousands of existing recipients continue to receive payments. If you're on FIT, or considering buying a property with FIT panels, here's what you need to know.

What Was the Feed-in Tariff?

The Feed-in Tariff was a government scheme that paid homeowners for every unit of electricity their solar panels generated, plus an additional payment for electricity exported to the grid. It launched in April 2010 and ran until March 2019.

The scheme was hugely successful — it drove the majority of residential solar installations in the UK during its lifetime and transformed the solar industry from a niche product to a mainstream home improvement.

How FIT Payments Work

FIT has two components:

1. Generation Tariff

You receive a payment for every kWh your system generates, regardless of whether you use that electricity yourself or export it. You read your generation meter quarterly and submit readings to your FIT licensee (your energy supplier or a specialist company).

2. Export Tariff

You receive an additional payment for electricity exported to the grid. For most domestic FIT installations, export is "deemed" at 50% of generation (unless you have a separate export meter).

Payment Example

A homeowner who installed a 4kW system in 2015 at a generation tariff of 12.47p/kWh and export tariff of 4.91p/kWh (both now higher due to RPI indexation):

• Annual generation: 3,600kWh
• Generation payment: 3,600 x current indexed rate
• Export payment (deemed): 1,800 x current indexed rate
• Plus: savings from using free solar electricity directly

At 2026 indexed rates, this homeowner likely receives £600–900 per year in FIT payments alone, on top of electricity bill savings.

Indexation: the April 2026 change

FIT rates were historically linked to the Retail Price Index (RPI). From April 2026, uplifts have switched to the Consumer Price Index (CPI). Because RPI has historically run higher than CPI, this means FIT payments will rise more slowly each year from 2026 onwards.

This is worth knowing but should not alarm existing FIT holders:

• FIT payments continue in full — they simply increase at a slower rate than they would have under RPI
• Early adopters (2010–2012) with the highest initial rates still receive very generous payments, even with CPI uplifts
• Even later entrants (2017–2019) with lower initial rates have seen meaningful cumulative increases since registration
• The real value of FIT payments remains intact

Always check current indexed rates with your FIT licensee rather than relying on any published figure — they change annually.

Switching Export to SEG: a significant opportunity

One of the most financially important decisions for legacy FIT customers is whether to switch their export payment from FIT to the Smart Export Guarantee (SEG).

Key fact: you can keep your FIT generation payment AND switch your export side to SEG. These are separate contracts.

The financial incentive to switch export to SEG can be significant. However, switching requires:

1. A smart export meter capable of half-hourly metering — legacy FIT systems on deemed export will need one installed first (usually free from your chosen SEG supplier)
2. Notifying your FIT licensee that you are opting out of the FIT export component
3. Applying to a SEG licensee — obligated suppliers (those with over 150,000 customers) are required to accept eligible applications

You cannot receive FIT export and SEG simultaneously. Once you switch, you have relinquished the FIT export component and cannot reclaim it.

What Tariff Rate Do You Get?

FIT rates varied significantly depending on when you registered:

All rates shown are pre-indexation. Current actual rates are higher due to cumulative RPI increases since registration.

Early adopters who registered in 2010–2012 at 43.3p/kWh now receive the equivalent of 55–65p/kWh after years of RPI increases. This is extraordinarily generous — significantly more than the retail electricity rate.

How Long Do Payments Last?

FIT payments continue for a fixed period from the date your system was registered:

• Systems registered before August 2012: 25 years
• Systems registered from August 2012 onwards: 20 years

After this period, FIT payments stop. You still own and benefit from the panels (free electricity), but the additional generation and export payments end. At that point, you'd register for the Smart Export Guarantee to receive export payments.

Buying a Property with FIT Panels

If you're buying a house with existing solar panels that are on the Feed-in Tariff, the FIT registration can transfer to you as the new owner. Key considerations:

• FIT transfers with the property — The seller and buyer need to notify the FIT licensee of the change of ownership
• Remaining FIT term — Check how many years of payments are left
• System condition — Assess whether panels and inverter are in good working order
• Valuation impact — FIT income should add value to the property, but not all estate agents or mortgage lenders account for this adequately

What Happens When FIT Ends?

When your FIT payments expire:

1. You keep the panels — The system continues generating free electricity for as long as it works (typically 25–30+ years)
2. Register for SEG — The Smart Export Guarantee provides export payments (lower than FIT export rates, but still something)
3. Self-consumption becomes key — Without generation payments, the value of solar is entirely in the electricity you use directly and the export payments you receive
4. Consider adding a battery — If you didn't have one before, a battery maximises self-consumption and the value of your post-FIT system

If you're looking to add a battery to maximise your FIT system's value, these are popular options:

Trina Solar Vertex S+ 445W

£75

watt peak

445

efficiency pct

22.5

dimensions mm

1762 x 1134 x 30

weight kg

21.8

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Affiliate link — we may earn a small commission at no extra cost to you

Canadian Solar HiKu7 455W

£80

watt peak

455

efficiency pct

22.9

dimensions mm

1762 x 1134 x 30

weight kg

22

View on Amazon

Affiliate link — we may earn a small commission at no extra cost to you

Can You Add to a FIT System?

If you have an existing FIT system and want to add more panels:

• Adding panels to the same system may affect your FIT registration
• You generally cannot claim FIT on additional capacity
• Additional panels can be registered for the Smart Export Guarantee separately
• Consult your FIT licensee before making any changes to avoid jeopardising existing payments

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