Solar Panel Feed-in Tariff in the UK: What You Need to Know
The solar panels feed-in tariff UK scheme, often known as the solar FIT, significantly helped make renewable energy a common option for households and businesses. Although the scheme stopped accepting new applicants in 2019, its impact remains. Current participants still receive FIT payments for their solar panels.
Let’s explore the history of feed in tariff rates, how the scheme functioned, and what has taken its place today.
What Is the Solar Feed-in Tariff UK?
The electricity feed-in tariff in the UK started in 2010. The government aimed to promote renewable energy, especially solar power. The scheme offered two main payments to those who installed solar panels:
Generation Tariff – a payment for each unit of electricity generated.
Export Tariff – an extra payment for the electricity sent back to the grid.
The concept was straightforward. The feed-in tariff systems for solar panels were designed to be financially beneficial while also helping to reduce carbon emissions nationally.
Feed-in Tariff Rates History
The history of feed-in tariff rates shows why the scheme became popular.
➡️ 2010–2011 – Early adopters received high rates of up to 41.3p/kWh, guaranteed for 25 years.
➡️ 2012–2015 – As installations increased, tariffs were lowered but remained appealing.
➡️ 2016–2019 – Payments were further reduced to match falling solar panel costs.
➡️ 2019 onwards – The scheme closed, but existing contracts still run for 20 to 25 years.
These changes in payments reflect how subsidies adjust as technologies become cheaper and more common.
Why Was the Solar Panels Feed-in Tariff So Popular?
The solar feed-in tariff UK became one of the most successful renewable schemes in the country’s history. Its appeal came from:
➡️ Guaranteed FIT payments – provided predictable income streams.
➡️ Lower electricity bills – using self-generated power reduced reliance on the grid.
➡️ Long-term security – contracts lasted up to 25 years.
➡️ Green benefits – the scheme supported environmental targets.
In short, the solar panel feed-in tariff UK offered both financial and environmental value.
FIT Payments Solar Panels: How Did They Work?
The process for receiving FIT solar payments was straightforward:
1. Install
Install feed-in tariff solar panels through an accredited installer.
2. Submit
Submit meter readings to your energy supplier.
3. Receive
Receive quarterly or annual solar FIT payments based on your generation and export totals.
These payments were striking proof that going green could be profitable.
What HAS Replaced the Feed-in Tariff for Solar Panels?
When the government closed the solar feed-in tariff UK scheme to new applicants in March 2019, many people wondered what would take its place. To ensure solar and other small-scale renewables continued to contribute to the grid, the government launched the Smart Export Guarantee (SEG) in January 2020.
Under the SEG, energy suppliers with more than 150,000 domestic customers are required by law to offer a tariff that pays households and businesses for surplus electricity exported back to the National Grid. Unlike the feed-in tariff for solar panels, however, there is no generation payment – only an export rate.
FiT vs SEG: Side-by-Side Comparison
Feature | Feed-in Tariff (FiT) | Smart Export Guarantee (SEG) |
Payments | Paid for both generation (every unit produced) and export | Pays only for electricity exported to the grid |
Rate Setting | Fixed by the government at launch and guaranteed for 20–25 years | Set by energy suppliers; rates can vary and change over time |
Eligibility | Open to households and businesses installing approved solar systems between 2010–2019 | Open to all new solar panel owners with a smart meter (from 2020 onwards) |
Income Security | Guaranteed long-term payments, often inflation-linked | No long-term guarantees, market-based rates instead |
Metering | Generation meter plus deemed or actual export readings | Smart meters record exact export figures |
Financial Returns | Strikingly high in the early years (up to 41.3p/kWh) | More modest, but combined with energy bill savings still attractive |
Why SEG Still Matters
While SEG cannot match the impressive returns in the feed-in tariff rates history, it continues to support renewable adoption in the UK. Its value comes from:
Bill savings – Using your own electricity cuts dependence on the grid.
Export income – Even modest SEG payments add up over time.
Fair competition – Suppliers compete to offer higher SEG rates, giving consumers more choice.
Accessibility – Unlike FIT, SEG is open-ended, meaning anyone installing solar panels today can benefit.
The Smart Export Guarantee represents the next stage in the development of solar policy. With installation costs now far lower than in 2010, financial support no longer needs to be as generous. Instead, SEG rewards solar panel owners fairly while ensuring the grid benefits from clean, local power.
Frequently Asked Questions about the Solar Panel Feed-in Tariff and SEG
Can I still apply for the Feed-in Tariff in the UK?
No. The solar feed-in tariff UK closed to new applicants in March 2019. If you already joined before that date, you’ll continue to receive FIT payments solar panels for the full term of your agreement (20 to 25 years).
How much can I earn with the Smart Export Guarantee?
Earnings under SEG depend on how much electricity you export, and which tariff you choose. Rates vary by supplier, typically ranging from around 1p to 15p per kWh. While this is lower than the feed-in tariff rates history, SEG still provides a steady return alongside bill savings from using your own solar power.
Do I need a smart meter for SEG payments?
Yes. To qualify for SEG payments, you’ll need a smart meter capable of recording half-hourly exports. This ensures suppliers can pay you accurately for the electricity you send to the grid.
What happens if I already get FIT but want SEG?
If you’re on the feed-in tariff for solar panels, you cannot also claim SEG for the same system. However, you will continue to receive your agreed FIT solar payments for the duration of your contract.
Solar Panel Feed-in Tariff UK vs SEG: Which Is Better?
The old Feed-in Tariff (FIT) was very generous. It paid homeowners for generating and exporting electricity at high, fixed rates. That’s why early adopters made significant returns. Today, the Smart Export Guarantee (SEG) only pays for the electricity you send back to the grid, with rates determined by energy suppliers. Although it isn’t as profitable as FIT, the sharp decline in solar installation costs means panels still provide good savings and regular income without depending on large subsidies.
How to Apply for the Smart Export Guarantee (SEG)
If you’ve installed solar panels after the closure of the solar panel feed-in tariff UK scheme, you can still earn money through the Smart Export Guarantee. Applying is relatively straightforward, but there are some requirements you’ll need to meet.
Step 1: Check Your Eligibility
✅ Your solar PV system must be under 5MW in capacity.
✅ It must be installed by a certified installer under the Microgeneration Certification Scheme (MCS).
✅ You’ll need a smart meter capable of recording half-hourly export data.
Step 2: Choose an SEG Tariff
✅ Each licensed energy supplier sets their own SEG export rates.
✅ Rates vary, so it’s important to compare offers to find the most competitive deal.
✅ You don’t need to apply with your electricity supplier; you can export to a different one if they offer better terms.
Step 3: Prepare Your Documentation
When applying, you’ll usually need:
✅ Proof of MCS certification for your system.
✅ Confirmation of ownership (if you’re the system owner).
✅ Details of your smart meter.
Step 4: Submit Your Application
✅ Applications are made directly to the energy supplier offering the SEG tariff.
✅ Once accepted, your smart meter will record exports, and payments will be made quarterly or annually depending on the provider.
Step 5: Start Receiving SEG Payments
✅ Payments are based solely on the electricity exported back to the grid.
✅ Rates are flexible and can change, so it’s wise to review your supplier’s tariff periodically.
Lessons from the Solar Feed-in Tariff
The solar FIT scheme provides important lessons for energy policy in the UK:
➡️ Strong incentives spark adoption – high tariff rates encouraged rapid uptake.
➡️ Policy stability builds confidence – long contracts reassured investors.
➡️ Flexibility is essential – as costs dropped, tariffs had to be reduced.
➡️ Public awareness matters – the FIT scheme made solar a common household decision.
These lessons will continue to shape how renewable incentives are designed.
Should You Still Consider Solar Without FIT?
Absolutely. Even though the feed-in tariff for solar panels is no longer available:
Energy savings – Solar power reduces electricity bills immediately.
SEG payments – Still offer income for surplus power sent back to the grid.
Sustainability – Solar cuts reliance on fossil fuels.
Business benefits – Companies lower costs and improve their green credentials.
The impressive returns of FIT solar may belong to history, but solar remains a strong investment today.
The Future Beyond the Solar Feed-in Tariff
Looking ahead, we expect ongoing growth in solar power as energy prices increase, and the UK aims for net zero.
Although the solar panel feed-in tariff in the UK is no longer active, its impact is still felt.
This scheme helped solar energy transition from a niche choice to a common and affordable solution for businesses and homes.
To Sum Up
The solar feed-in tariff was one of the most successful renewable incentives in the UK. Its history shows how effective government action can be in promoting energy use.
Today’s solar adopters may not receive FIT payments for solar panels, but they can still enjoy the Smart Export Guarantee, reduced installation costs, and long-term savings on energy.
While the solar panel feed-in tariff is no longer in place, its influence will continue to shape the future of renewable energy in the UK.