Managing your Feed-in Tariff payments

The Feed-in Tariff (FiT) scheme closed to new applicants on 1 April 2019. However, if you are an existing participant, you will continue to receive payments for the duration of your contract. This article provides clear advice on managing Your FiT payments and understanding the scheme's status.

Managing your energy, especially with renewable generation, can be simpler. Fuse Energy offers clear pricing and real-time usage data to help you make the most of your home's energy. Click here to switch to Fuse Energy today.

Understanding the Feed-in Tariff (FiT) scheme

What is the Feed-in Tariff?

The Feed-in Tariff (FiT) scheme was a UK government initiative launched in April 2010. Its purpose was to encourage the adoption of small-scale renewable and low-carbon electricity generation, such as solar panels and wind turbines, by providing financial incentives. The scheme offered payments to homeowners for the electricity they generated and, in some cases, for surplus electricity exported to the National Grid. Ofgem is the administrator of the Feed-in Tariff scheme, overseeing its operation and maintaining the register of eligible systems.

The FiT scheme's closure and its impact

The FiT scheme closed to new applicants on 1 April 2019. This means that installations commissioned after this date are not eligible for FiT payments. However, Existing FiT participants continue to receive payments for the duration of their contract, which can be up to 20 or 25 years from the installation date, depending on the technology and commission date. The closure marked a shift in how the UK supports new renewable energy generation.

Generation and export tariffs explained

Your FiT payments are typically made up of two components:

• Generation tariff: This is paid for every unit (kWh) of renewable electricity your system generates, regardless of whether you use it yourself or export it to the grid. The rate is fixed for the duration of your contract and is usually adjusted annually for inflation.
• Export tariff: This is an additional payment for any surplus electricity your system exports back to the National Grid. Historically, this was often a "deemed" export, meaning it was estimated that 50% of your generated electricity was exported, rather than being based on actual metered export.

FiT payments are typically adjusted annually for inflation. Historically, this adjustment was linked to the Retail Price Index (RPI) but, from 1 April 2026 (or FiT Year 17), tariff rates will be adjusted in line with the Consumer Price Index (CPI)1. For domestic generators, FiT payments are generally exempt from income tax, provided certain conditions are met, such as the electricity being mainly for personal use and the system being installed at or near your home. For specific tax advice, it is always best to consult a tax professional.

Managing Your FiT payments

Identifying Your FiT licensee

Your FiT licensee is the energy supplier responsible for administering Your FiT payments. This might be your current electricity supplier, or it could be a different company if you switched electricity suppliers after Your FiT contract began. You should have received documentation from your original installer or the FiT licensee confirming your contract details. If you are unsure, check your past FiT statements or contact Ofgem, the scheme administrator, for guidance. Ofgem also publishes a list of FiT licensees.

Submitting meter readings for accurate payments

To ensure you receive accurate FiT payments, you must regularly submit meter readings to Your FiT licensee. This typically involves providing both your generation meter reading (how much electricity your system has produced) and, if applicable, your export meter reading (how much electricity you have sent to the grid).

The frequency of submissions varies by licensee, but it is usually quarterly or half-yearly. Your FiT licensee will provide instructions on how to submit these readings, often through an online portal, email, or by phone. Missing or inaccurate readings can lead to delays or incorrect payments.

Understanding Your FiT statements and inflation adjustments

It is important to review Your FiT statements carefully. These statements detail your generation and export payments, the rates applied, and any adjustments for inflation. As mentioned, FiT payments are adjusted annually for inflation, now linked to the CPI from April 2026. These adjustments ensure the value of your payments keeps pace with living costs. If you notice any discrepancies or have questions about your statement, contact Your FiT licensee directly.

FiT vs Smart Export Guarantee (SEG)

The end of FiT and the rise of SEG

With the closure of the FiT scheme to new applicants, the government introduced the Smart Export Guarantee (SEG) on 1 January 2020. The SEG is the successor scheme for new renewable energy installations, providing payments for exported electricity. Unlike FiT, the SEG only pays for exported electricity, not for the electricity generated and used within the home. To receive SEG payments, you must have a smart meter installed to track exported electricity accurately.

What SEG means for Existing FiT participants

If you are an Existing FiT participant, the SEG does not directly affect your current FiT contract. You will continue to receive your generation and export payments under the terms of your original FiT agreement. You cannot switch from FiT to SEG for your existing installation, as the schemes are distinct. The SEG is designed for new installations commissioned after the FiT closure date.

Considering your energy strategy post-FiT

While Your FiT payments are secure, it is worth considering your broader energy strategy. Maximising self-consumption (using the electricity you generate directly in your home) can be beneficial, as you avoid purchasing electricity from the grid at retail rates. Technologies like battery storage can help you store surplus generation for later use. For any electricity you export that is not covered by Your FiT's deemed export, you might be able to secure additional payments through a separate SEG tariff, though this depends on your specific FiT contract and meter setup.

Optimising your renewable energy with Fuse

Beyond FiT payments: maximising your generation

For homeowners with existing renewable energy systems, your generated energy is a valuable asset. Fuse Energy helps you see your energy generation not just as a payment to be received, but as a resource to be optimised. We empower you to 'play with' your energy surplus, making informed decisions about how and when you use your power. This could involve shifting high-demand activities to times when your panels are generating most, or considering smart home upgrades that work in harmony with your generation.

Transparent tariffs and real-time data for control

Fuse's app provides clarity on your overall home energy usage and generation. With transparent tariffs and real-time data, you gain control over your energy consumption. You can monitor how much electricity your system is producing, how much you are using, and how much you are exporting. This insight empowers you to manage your home energy system effectively alongside Your FiT payments, ensuring you get the most out of your renewable investment.

24/7 human support for your energy journey

Navigating complex energy queries, especially those related to existing renewable schemes and optimising your energy strategy, can be challenging. Fuse Energy offers 24/7 human customer support. Our team is available around the clock to provide proactive support and help you understand your energy usage, tariffs, and how to best integrate your renewable generation into your home's energy ecosystem. We are here to help you make the most of your energy journey.

Key points and next steps

• The Feed-in Tariff (FiT) scheme closed to new applicants on 1 April 2019.
• Existing FiT participants continue to receive payments for the duration of their contract.
• FiT payments include generation and export tariffs, with deemed export often set at 50% of generated electricity.
• FiT payments are adjusted annually for inflation, moving from RPI to CPI from 1 April 2026.
• The SEG replaced FiT for new installations from 1 January 2020, but does not affect Existing FiT contracts.
• Regularly submit accurate meter readings to Your FiT licensee to ensure correct payments.
• Consider how to maximise self-consumption and integrate smart home technologies to optimise your renewable energy assets.
• Fuse Energy provides transparent tariffs, real-time data, and 24/7 human support to help you manage and optimise your home's energy, empowering you to make the most of your renewable generation.

Ready to take control of your home energy and make the most of your renewable generation? Fuse Energy offers clear pricing, real-time usage data, and 24/7 human customer support to help you manage your energy effectively. Switching is quick and easy, so you can start optimising your home's energy from day one. Click here to switch to Fuse Energy today. You can also learn more about our mission to make energy abundant by clicking here.

References

1. Sunsave. The Feed-in Tariff: past & current rates [UK, 2026].