The Feed-in Tariff is a new Government backed measure to make it worth your while whilst helping to reduce your carbon footprint and energy bills by becoming energy efficient and producing their own renewable electricity.
There are three separate tariffs in the scheme that help you make money from generating electricity: -
You earn a fixed income for every kilowatt hour of electricity you generate and use in your property.
You earn an additional fixed income for every kilowatt hour of electricity you generate and sell back to the grid.
Electricity that is generated by your solar panels will be directly fed into your house and power any appliances you are using, therefore saving you money on your electricity bill.
When you can’t generate enough electricity for your needs (if the sun don’t shine bright enough!) you still buy electricity from your utility company at the normal rates but it’ll be much less electricity than you currently buy.
If your solar panels are producing any extra energy this is also sold back to the grid at a reduced rate.
To avoid selling this extra electricity back at the reduced rate the easiest way would be to optimise use of power hungry machines such as washing machine or dishwasher during daylight hours. This will give you the greatest reduction on your energy bill.