PV panels are groups of photovoltaic cells made up of layers of semi-conductive material. When sunlight shines on the panels, photons in the light cause electrons in the panel to move around. The panels then convert the electrons into an electric field creating a current of DC electricity.

So that you can use the energy in your home, a small inverter converts this DC electricity into AC electricity. And any surplus electricity gets exported to the National Grid.

Feed-In Tariffs replaced UK government grants for the domestic renewable energy on 1 April 2010.

The Department for Energy and Climate Change (DECC) makes Government policy decisions on FITs. And the energy regulator Ofgem administers the scheme. Your energy supplier makes the FITs payments to you.

To qualify for the FITs:

• Your installer and solar products must be Microgeneration Certification Scheme (MCS) certified
• Your home should have an Energy Performance Certificate (EPC) rating of D or above

You should make energy efficiency improvements before you apply for the FITs if your property EPC rating is band E, F or G or below. Otherwise, you’ll receive a much lower payment for the length of the tariff (currently 20 years).

FITS eligibility date

The eligibility date is the date when your system becomes eligible for FITs payments. For most renewable electricity systems, it’s the date your FIT supplier (or FIT licensee) receives your valid application for FITs.

You will make your application after we install your system. But we recommend you contact your FIT supplier to confirm their requirements and check what information they need from you as soon as possible.

Benefits of the Feed-in Tariff Scheme

You’ll benefit financially from the FITs in three ways:

Get paid to generate clean power

Your energy supplier will pay you for each unit (kWh) of electricity you generate. Once you’ve registered your system, the rate you receive is guaranteed for the life of the tariff (up to 20 years). Your tariff rate will increase in line with inflation.

Get paid for the electricity you export

You can sell any electricity you generate but don’t use. Your energy supplier will pay you a further sum for each unit (kWh) you export back to the National Grid. At the present time, electricity suppliers estimate the amount of electricity you generate and don’t use at 50% (smart meters will be introduced eventually).

Save money on your electric bills

Generating your own electricity means you don’t have to buy as much electricity to power your home. The amount you save will vary according to how much electricity you use in your home.