Unlike the Green Deal, The Feed In Tariff has been incredibly popular! It allows people to invest in small-scale low-carbon electricity, in return for a guaranteed payment from an electricity supplier of their choice, for the electricity they generate and use as well as a guaranteed payment for unused surplus electricity they export back to the grid.

Take up has been so vigorous that recently the rate had to be dropped because the applicable budget had been used up. There are always rate drops, called degressions, scheduled every year or so, as the incentive becomes less necessary, due to reduced technical costs and increases in fuel bills. Ultimately there will be no Feed in Tariff - whenever a cut is due, as you can imagine, demand for Solar PV installations soars! Unfortunately this has a well documented and negative affect on the Solar PV industry, as businesses are forced to trade in a 'feast or famine' environment. Arguably this suits the incumbent fossil fuel industry and it's investors.



There are three financial benefits from FITs:

Generation tariff – the electricity supplier of your choice will pay you for each unit (kilowatt) of electricity you generate

Export tariff – if you generate electricity that you don't use yourself, you can export it back to the grid. You will be paid for exporting electricity as an additional payment (on top of the generation tariff)

Energy bill savings – you won't have to import as much electricity from your supplier because a proportion of what you use you will have generated yourself, you will see this impact on your  electricity bill. 

information provided by:http://www.decc.gov.uk