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Feed-in tariff meaning

Published by a LexisNexis Energy expert
What does Feed-in tariff mean?
A feed-in tariff is a payment mechanism under which small-scale low‑carbon generators are paid for each unit of electricity they generate and, separately, for electricity exported to the grid. In Great Britain, “Feed‑in Tariffs” (FIT) is a statutory scheme created under the Energy Act 2008 and secondary legislation, administered by Ofgem via supplier licence conditions. Key features include eligibility for technologies such as solar PV, wind, hydro, anaerobic digestion and micro‑CHP, with capacity generally up to 5 MW (2 kW for micro‑CHP), accreditation (typically via MCS or ROO‑FIT), metering requirements, index‑linked tariffs, and 20–25 year payment terms. FIT rights and obligations are material in project finance, property and M&A due diligence, including assignment of payments, change of ownership and metering/export arrangements. In Great Britain the FIT scheme opened in April 2010 and closed to new accreditations on 31 March 2019. Accredited installations continue to receive generation and export payments for the remainder of their tariff period. For new GB installations, export payments are available under the Smart Export Guarantee. Northern Ireland did not implement the GB FIT; support was primarily through the Northern Ireland Renewables Obligation (now closed) and supplier export tariffs. In Ireland, “feed‑in tariff” is used descriptively; current support is...
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CHECKLISTS
Rooftop solar PV on let buildings: legal checklist covering leases, PPAs, REGOs, SDLT, planning, grid, regulation, funding and redevelopment/early removal

For more practical, step-by-step guidance on solar projects, including viewpoints from several jurisdictions, consult the textbook also: Solar Power: A Practical Handbook. Negotiating a rooftop lease for solar PV panels When arranging a rooftop lease for solar PV panels, the matters at stake will differ according to the interests of the party you represent. Those issues shift depending upon whether one acts for the landlord, the occupier, or the solar tenant. Here, 'landlord' describes the owner of the freehold or a long lease of the relevant building; 'occupier' means the party in occupation; and 'solar tenant' is the entity proposing to install and own the panels. The solar tenant may equally be the building’s occupier, or could be a dedicated solar developer. A growing number of landlords are fitting solar panels to their properties—either via the same corporate vehicle that holds the building, or through a related solar company. This note addresses rooftop leases and, accordingly, assumes a structure in which the solar tenant is a distinct legal...

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CHECKLISTS
RTA Small Claims Protocol (England and Wales): Scope, Exclusions, Portal Procedure, Whiplash Tariff (2025), Mixed Injury Damages, Evidence, Medical Reports, Offers and Liability

The Pre-Action Protocol for Personal Injury Claims Below the Small Claims Limit in Road Traffic Accidents (RTA Small Claims Protocol) is engaged for collisions taking place on or after 31 May 2021. For RTA personal injury matters, the small claims track cap for general damages—covering pain, suffering and loss of amenity (PSLA)—now stands at £5,000, save for exceptions in CPR 26.10 and CPR 26.11. The protocol is intended for situations where a person has sustained injuries in a road traffic accident (including, though not confined to, whiplash) and wishes to pursue compensation, provided the sum claimed for the injury does not exceed £5,000 and the value of the case does not exceed £10,000. It operates for claimants pursuing personal injury compensation from RTAs within these injury and overall value limits. For additional guidance on using the RTA Small Claims Protocol, consult Practice Note: The road traffic accident small claims protocol...

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NEWS
US tariffs risk higher UK insurance premiums or reduced cover as repair costs rise; LMA and PwC warn of swift impact, especially in motor

The Lloyd's Market Association (LMA), an industry body, warned that tariff-driven rises in the cost of fixing equipment and facilities may see the burden ultimately shifted to policyholders. The insurance sector is becoming ever more sensitive to trade volatility, particularly across personal-lines offerings such as motor vehicles, which rely on low-cost supplies of car parts to keep repair costs down today...

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NEWS
US executive order to establish tariff-collecting 'External Revenue Service'; EU prepares retaliation under Anti-Coercion Instrument, with tariffs of up to 60% proposed

As an initial move, the incoming administration, Trump promised, will set up an external revenue authority to collect import tariffs and duties. Core to his campaign is tariffs as high as 60% on goods from China and 25% on products from other economies, including Canada and Mexico. He intends to channel proceeds from these duties into cuts in income tax for US citizens. ‘I will at once commence a transformation of our trade regime to safeguard American workers and families nationwide...

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NEWS
US Supreme Court limits presidential tariff powers under IEEPA; Trump imposes 15% baseline under Trade Act s 122 and readies s 301/232 actions

Trump approved the order on the evening of 20 February 2026, introducing a 10% levy due to apply from 24 February 2026 until 24 July 24 2026 under section 122 of the Trade Act of 1974 (TA 1974). Under this provision, the President may impose a baseline tariff of up to 15% on every country for no more than 150 days, unless Congress authorises a longer period. Many classes of products are carved out from the section 122 charge, covering imports already facing particular sectoral duties, plus items not widely produced at home, including food, books and textiles, per a White House fact sheet. On 21 February 2026, Trump posted on Truth Social that he would promptly lift the Section 122 tariff to the statutory ceiling of 15%, immediately and in full as announced there...

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PRACTICE NOTES
UK-EU TCA: Trade in Goods—Preferential Origin, MFN Tariffs, Import/Export Controls, Valuation, Remedies, Tariff Rate Quotas, SPS/TBT and Customs Facilitation

Introduction to the UK-EU Trade and Cooperation Agreement This Practice Note summarises the key features of the UK‑EU Trade and Cooperation Agreement (TCA) that affect trade in goods between the UK and the EU. It covers customs and export duties and other charges, and outlines the preferential rules of origin operating between the parties. It also considers import and export restrictions and licensing, customs valuation, trade remedies and tariff rate quotas. Further topics include sanitary and phytosanitary measures, technical barriers to trade, and measures on customs and trade facilitation. On 24 December 2020, UK and EU negotiators concluded an accord shaping their future relationship. The UK–EU Trade and Cooperation Agreement is a wide‑ranging instrument arising from the UK’s departure from the EU’s internal market (Brexit) and extends beyond trade in goods and services. It also covers a range of other Brexit‑related matters, including: investment competition state aid tax transparency air and road transport energy and sustainability fisheries data...

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PRACTICE NOTES
Personal Injury and Clinical Negligence July 2025: discount rate, costs/QOCS, RTA reforms, CPR updates and leading cases (England and Wales) [Archived]

PI & Clinical negligence horizon scanner—July 2025 [Archived] ARCHIVED: This Practice Note is archived and is not maintained. It summarises the principal legal developments relevant to personal injury and clinical negligence practitioners as at July 2025. For developments predating this horizon scanner, see PI and Clinical Negligence horizon scanning and key cases—overview. Key PI and clinical negligence developments The personal injury discount rate—a review In late 2024, the Lord Chancellor, Shabana Mahmood MP, revealed the outcome of her five‑month review of the discount rate, initiated in July 2024. One month after the new +0.5% discount rate took effect, Thea Wilson (barrister at 12 King’s Bench Walk) assesses its impact on cases, the responses from claimant and defendant representatives, and the consequences of the change for legal practitioners. See News Analysis: The personal injury discount rate—a review. MoJ announces reduction in CFO’s interest rates The Ministry of Justice (MoJ) has announced lower interest rates for the Courts Funds Office’s (CFO) special and basic accounts...

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PRACTICE NOTES
WTO Trade Law Fundamentals: Structure, MFN and National Treatment, Tariff Bindings, Quota Rules, Schedules and Modes of Supply, Transparency, Development, Exceptions, and TRIPS Exhaustion

Structure of the WTO agreements The Marrakesh Agreement Establishing the World Trade Organisation (Marrakesh Agreement) functions as the umbrella WTO Agreement, as it provides the institutional and legal framework. The next layer of instruments sits in Annex 1 to the Marrakesh Agreement. Three agreements - the General Agreement on Tariffs and Trade 1994 (GATT 1994), the General Agreement on Trade in Services (GATS) and the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS Agreement) - set out the core principles on liberalising trade in goods, services and intellectual property rights, respectively, together with any exceptions. This Practice Note introduces those principles and exceptions. It should be noted that, for GATT 1994 and GATS, two additional layers must be considered to obtain a comprehensive view of trade in goods or services. Under GATT 1994 there are further agreements or annexes regulating particular sectors or specific aspects of trade in goods, such as the Agreement on Agriculture and the Agreement on the Application of Sanitary and Phytosanitary Measures....

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