The Feed in Tariff (FIT) scheme was launched to encourage the the development of small scale renewable and low-carbon technologies to generate energy up to a total installed capacity of 5MW located in England, Wales and Scotland.
The FIT scheme requires certain Licensed Electricity Suppliers (FIT Licensees) to pay a generation tariff to small-scale low-carbon generators for electricity generated. An export tariff is also payable where electricity is exported to the transmission or distribution network.
Installations using solar photovoltaic , wind, hydro and anaerobic digestion technologies up to 5MW and fossil fuel derived Combined Heat and Power up to 2kW or "microCHP" can receive FIT payments, providing all eligibility requirements are met.
The FIT scheme replaced the Renewables Obligation as the main mechanism of support for solar photovoltaic, wind and hydro installations that generare less than 50kW (micro installations).
The FIT scheme was introduced by the Department of Energy and Climate Change in April 2010 and is administered by the Gas and Electricity Markets Authority (the Authority), whose day to day functions are performed by Ofgem.