Everything you need to know about Feed-in Tariffs (FiT)

Feed-in Tariffs (FiT) were a UK Government-run scheme to pay households back for renewably generated electricity from sources such as solar panels. The scheme is now closed and has been replaced by the Smart Export Guarantee, however existing FiTs are still managed by UK energy suppliers.

1. About the FiT scheme

How does FiT work?

Customers with existing FiTs send their supplier FiT meter reads, and these are used to calculate four payments a year.

FiT payments include:

• Generation tariff: a payment for the total amount of electricity generated.
• Export tariff: a payment for the electricity sent back to the grid.

Who’s responsible for the FiT scheme?

The UK Energy regulator Ofgem oversees the FiT scheme, but the payments are handled by energy suppliers, known as FiT licensees. More info can be found on the Ofgem website here.

Can I sell my Feed-in Tariff?

It’s possible to sell your FiT to a third party company, for a lump sum. They’ll then receive future FiT payments. There’s more info about this on the Which? website.

2. SEG vs FiT

Key differences between the Smart Export Guarantee (SEG) and the FiT scheme:

• Tariff rates: All energy suppliers offer the same FiT rates, however SEG rates vary between suppliers. OVO’s SEG rates can be found here.
• Calculating payments: FiT payments are based on generation and export, whereas SEG payments are based only on exports. A smart meter is needed to record the export reads.

What types of energy generation are eligible for SEG?

You can 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)

3. Payments

When will I receive FiT payments?

FiT payments are calculated based on reads submitted in March, June, September and December. Generation reads must be submitted by the end of these months. Payments are processed around eight weeks later and are sent to your nominated bank account.

How are 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 payments increase with inflation?

On 1 April each year, FiT rates are adjusted based on the Consumer Price Index (CPI) to account for inflation. You can see more info on Ofgem’s website here.

Are FiT payments taxable?

Feed-in Tariff payments are tax-free when electricity generated is used for domestic purposes. However, if the property is VAT registered then VAT is added to export payments.

4. Meter readings

When do I need to give FiT readings?

Readings are due in March, June, September and December, and we’ll email you to let you know. 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 you miss a reading then the payment for that quarter can’t be processed immediately. If you submit a reading during the next cycle we’ll then ensure the balance is backdated to include your previous payment.

What happens if I don’t verify my meter?

We’re regulated by Ofgem to check generation meters at least once every two years, and we’ll contact you to let you know when this is due.

Verification requires a clear photo of the meter showing the serial number and current reading. Payments are paused if these photos aren’t submitted.

What’s a metered export tariff?

A metered export tariff pays for every kilowatt hour of electricity exported to the 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?

The installer will be able to help with all technical questions relating to their equipment. If any generation equipment is changed please let us know straight away so your payments aren’t affected.

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 FiT licensee can be two separate companies. If you switch your electricity supply to OVO, your FiT account will stay with your current supplier unless you decide to move it.

If you have FiT with another supplier and would like to move it to OVO, you’ll need to fill out our online FiT Switch Form.

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

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

Your generation and export rates won’t change. Feed-in Tariff rates are regulated by Ofgem, so moving your account doesn’t affect the payments you receive.

What happens to my FiT account if I move house?

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

If solar panels are removed and reinstalled at a new property, they’re 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, ask the seller to confirm if the system is registered to FiT and, if so, who the FiT licensee is.

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

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

Generation systems can be expanded to generate extra energy, but extended capacity won’t be eligible for FiT payments. You can find more info on Ofgem's website.

If you modify your system, please let us know by emailing fits@ovoenergy.com. 

What if I have a battery installed?

If a battery storage system is installed, we’ll need a diagram showing the connection path from the panels to the installation. This gives us the proof that the exported energy is originating from the renewable system.

Need to contact us about FiTs?

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