Financial Considerations and Returns

What was the FIT?

The Feed In Tariff was a subsidy funded by a "levy” on all electricity consumers (you and me) which was introduced by the UK Government on the 1st April 2010 and designed to encourage the small scale generation of electricity from renewable or low carbon sources such as solar panels (PV), wind turbines, hydro power or anaerobic digestion. Having installed an eligible system with a total capacity of up to 50kWp the scheme provided you with three different financial returns:-

  1. A guaranteed minimum payment for all of the electricity you generate, whether you use it yourself or not for a period between 20 and 25 years. (depending on the date of commissioning)
  2. A additional guaranteed payment for 50% of the electricity you generate which it is assumed you will not use and therefore export to the national grid. this was called "Deemed" export and only applied to systems under 30kW. For On larger systems, typically over 100kW the exported electricity can be sold to an "electricity wholesaler" through a Power Purchase Agreement (PPA)
  3. A saving of the equivalent purchase cost on the electricity that you generate and are able to use yourself in your home or business.

From 1st April 2019

The Feed In tariff scheme came to an end on the 31st March 2019.

There is currently no subsidy available for generating renewable electricity nor is it likely that any such scheme will be introduced in the future.

Financial Returns

Whilst the cost of installing PV continues to fall, the cost of purchased electricity continues to increase. Farmers and others who have high electricity usage will especially benefit from installing solar PV where they use most of the electricity they generate on farm.

Poultry sheds, Dairy units, Grain and Potato stores all offer excellent financial returns from solar PV.

Static Caravan Parks where the site owner owns the electricity supply and then recharges each tenant with their metered electricity consumption can offer extremely good financial returns from a solar PV installation.


For Solar PV installations over 100kWp a Power Purchase Agreement with a "Green Energy” company is likely to provide the best return. Under this arrangement, in addition to your Generation meter, a half hourly Export meter is fitted to the installation to record exactly how much electricity you do not use and export to the National Grid. You are then paid for this amount at a value which is usually over 40% of the current retail price of electricity.

Selecting the right company and setting up a Power Purchase Agreement together with a Meter Operator and OFGEM registration is quite a complex process requiring some specialist knowledge. Westflight are experienced in this area and will undertake this as your Agent if required, and additionally service the contract on an annual basis if required.