Selling Your Feed-in Tariff Income: Is a FiT Buyback Worth It?

If you're on the Feed-in Tariff and someone is offering you a lump sum in exchange for your remaining payments, this guide will help you understand exactly what that offer is worth — and what you'd be giving up.

What is a FiT buyback?

A FiT buyback — also called solar equity release — is a financial arrangement where a third-party company pays you a lump sum today in exchange for the right to receive all your remaining Feed-in Tariff payments for the duration of your contract.

In practical terms, once you sign the agreement:

• The company receives your FiT generation and export payments directly from your FiT licensee for however many years remain on your term
• You keep your solar panels and continue to benefit from free or cheap electricity generated by the system
• You no longer receive any FiT income yourself

The FiT scheme ran from April 2010 to March 2019. Most residential systems were registered on 20-year terms, meaning the last registrations run until 2039. If you installed in 2012, you have payments running until 2032. If you installed in 2017, yours run until 2037.

These are not small sums, and the remaining value is often much higher than the lump sum being offered.

How much is your FiT actually worth?

Before engaging with any company making you an offer, it's worth calculating the value of your remaining FiT income yourself. Here's how:

Step 1: Find your current annual FiT income

Check your most recent quarterly statements from your FiT licensee. Add up four quarters to get your annual total. This is your baseline figure.

Step 2: Count your remaining years

FiT terms are 20 or 25 years from the date your system was registered (not installed — the registration date). Systems registered before August 2012 typically have 25-year terms; those registered after August 2012 have 20-year terms.

Step 3: Account for indexation

FiT rates increase each year. Until March 2026, increases tracked the Retail Price Index (RPI). From April 2026, they track the Consumer Price Index (CPI) instead — slightly lower, but still an annual uplift.

At a conservative 2.5% annual increase (CPI), the nominal value of your payments over time is meaningfully higher than a flat projection. The table below illustrates this:

Early adopters who registered in 2010–2012 often receive £1,000–£2,000 or more per year in FiT payments, at rates of 40p+/kWh after years of indexation — far above today's electricity retail price. If you're in this group, the remaining value of your FiT is likely to be particularly substantial.

What buyback companies typically offer

FiT buyback companies typically offer between 3 and 6 times your current annual FiT income as a lump sum. Some position this as "up to 6x" to make the offer sound generous.

Let's look at what that actually means compared to the value you'd be handing over:

Example: £600/year FiT income, 9 years remaining

• Remaining nominal value: ~£5,400
• With 2.5% annual CPI uplift: ~£6,090
• Company offer at 4x annual income: £2,400
• Company offer at 6x annual income: £3,600

In this example, even the most generous offer (6x) represents receiving only around 59p for every £1 of future income you'd otherwise collect. At the more typical 4x multiple, you'd receive around 39p in the pound.

The gap exists because the company needs to make a profit on the transaction. They're essentially lending you money against future income — at an implied interest rate that's often well above what you'd earn by putting a lump sum into savings.

The discount rate argument — and why it's weak for most people

Buyback companies often argue that money now is worth more than money later — this is the concept of the "time value of money." They're not wrong as a general principle, but the argument matters much less than it sounds for most homeowners.

The relevant question is: what could you actually do with the lump sum that earns more than you'd receive by simply waiting for your FiT payments?

At typical UK savings rates, if you received a £3,600 lump sum (6x annual income example above) and put it into a fixed-rate savings account at 4%, you'd earn around £144/year in interest. That's considerably less than the £600/year FiT income you gave up — and once the FiT period ends, you still have the capital, but it's been eroded by inflation.

For the discount rate argument to hold, you'd need to be confident of deploying the lump sum at returns significantly above your FiT income yield — and you'd need those returns to be reliable over the remaining term. For most homeowners, this is not a realistic scenario.

When a buyback might make sense for you

This is genuinely an individual decision, and there are circumstances where accepting a lump sum could be a reasonable choice:

Urgent need for cash. If you face a significant, immediate financial need — home repair, debt clearance, care costs — and have no better access to credit, releasing FiT equity is at least a legitimate option. You'd be trading future income for present certainty.

You're planning to sell the property soon. If you intend to sell within the next couple of years, you could release the FiT value now rather than relying on the property sale to reflect it. However, this is only worth doing if the buyer is unlikely to place full value on the remaining FiT — and buyers with good solicitors and accurate information usually do.

Health or age means you won't be in the property for the full remaining term. If there's a genuine likelihood you won't benefit from several years of future payments, a portion of that future value now has real appeal. This is a deeply personal calculation.

Short remaining term with small annual income. If you have 3–4 years left on a modest FiT rate, the total remaining value is relatively low, the uplift effect is small, and the friction of managing quarterly readings for a few more years may outweigh the difference.

When it almost certainly doesn't make sense

For most FiT holders in most circumstances, accepting a buyback offer is unlikely to be the best financial decision:

• You plan to stay in the property. The payments will come to you naturally, with no effort required beyond quarterly meter readings.
• You have a well-maintained system still generating reliably. The income stream is as secure as any financial asset you're likely to hold.
• You have several years remaining at a meaningful rate. The maths almost always favours waiting.
• You're on a high early-adopter rate. 40p+/kWh generation payments (now CPI-indexed upwards from initial rates set in 2010–2012) are extraordinarily valuable. Selling these for a multiple of one year's income could cost you tens of thousands over the remaining term.
• You don't have a specific use for the lump sum. If the money would sit in a savings account, you're almost certainly better off leaving the FiT in place.

Legal mechanics: what actually happens

When you accept a FiT buyback offer, the company gains the legal right to receive your FiT payments. The mechanics vary by company and contract, but typically involve:

Assignment of FiT payments: You formally assign the right to receive your FiT income to the third party. This is usually done through a deed of assignment or variation to your FiT agreement.

Notification to your FiT licensee: Your FiT licensee (the company that currently pays you — this could be your energy supplier or a specialist FiT administrator) must be notified that payments are to be redirected. Not all licensees handle this identically, and some require additional forms or have specific processes.

Smart meter installation: Many buyback companies install a smart meter as part of the deal. This allows them to monitor your generation remotely and verify the system is functioning. While framed as a benefit to you, it primarily serves the company's interest in protecting their investment.

Duration: The assignment typically runs for the entire remaining term of your FiT contract. There is generally no exit provision once signed.

Panel ownership: You retain ownership of your solar panels throughout. The buyback company is not purchasing the panels — only the income stream.

It is worth seeking independent legal advice before signing any assignment deed, particularly to understand what happens to the assignment if you sell the property, remortgage, or if the company buying your FiT payments goes into administration.

What to watch out for

Several practices in this sector are worth being aware of:

Understating your remaining value. A company calculating your "total remaining value" may use flat projections (ignoring CPI indexation), pessimistic generation assumptions, or inflate their discount rate to make the lump sum look more attractive by comparison. Do your own calculation first.

Burying what you're giving up. The contract should clearly state: the total number of years being assigned, the current annual FiT payment, the approximate total nominal value being transferred, and what happens in various scenarios (sale, death, administration of the assignee). If these are unclear, ask for clarity before signing.

Bundling with "free" services. Some companies bundle the buyback with "free" annual maintenance, inverter replacement cover, or panel cleaning. This sounds attractive but is simply a redistribution of value — the company is using part of your FiT income to fund these services, not providing them out of generosity.

Companies of uncertain financial stability. You're entering into a long-term contract (potentially 10+ years) with a company. If that company becomes insolvent, the assignment of your payments could become legally complicated. Check the company's financial standing and how long it has been operating.

Mortgage implications. If you have a mortgage on the property, your lender may have a legal interest in assets associated with it. Some mortgage agreements require you to seek lender consent before assigning income streams attached to the property. Check your mortgage terms or ask your lender before proceeding.

What happens when you sell your home — without a buyback

This is worth understanding clearly, because it affects whether a buyback is ever necessary as part of a property sale.

The solar panels are a fixture of the property. They transfer to the buyer on completion, like any other fixed feature.

The FiT registration should transfer to the new owner. The seller and buyer both need to complete a change of ownership notification with the FiT licensee. Most major FiT licensees have a standard form for this. Your solicitor should handle this as part of conveyancing — check that it's on their list.

The FiT adds value to the property. A buyer who understands what a FiT registration is worth — especially one with years remaining at a decent rate — should factor this into their offer. Homes with active FiT contracts frequently command a premium, though how consistently this is priced in varies.

You keep payments up to the completion date. FiT income received during the period of ownership is yours. Payments after completion belong to the new owner.

You do not need to accept a buyback deal in order to "cash in" your FiT before selling. The normal property sale process achieves this — the FiT value is embedded in the price you negotiate.

The "free battery in exchange for your FiT" variant

A typical home battery system (5–10kWh, installed) costs between £3,000 and £6,500 as of April 2026. If a company is offering you a battery "for free" in exchange for your FiT income, the implied deal is that your FiT income is worth at least the cost of that battery — probably more, after accounting for their profit margin.

Consider an example: a homeowner with £900/year FiT income and 12 years remaining. The nominal remaining value is £10,800, rising to over £13,000 with indexation. A company installs a battery costing them £4,000 and takes the FiT income. Their net gain over the term — after battery cost — is £9,000 or more. The homeowner gets a battery.

Whether that's a reasonable exchange depends on your circumstances. If you genuinely need a battery, couldn't otherwise fund one, and have no urgent financial need for the FiT income, it may suit you. But the value being transferred from homeowner to company in most of these arrangements is substantial.

If you want a battery and have FiT income, one option worth exploring is whether you can fund a battery separately using the FiT income as security or as a savings vehicle — without giving up the income stream permanently.

Your options in summary

There is no universally right answer. The right choice depends on how many years remain on your contract, your annual FiT income, how long you plan to stay in the property, and whether you have a specific use for a lump sum that makes it more valuable to you than the income stream.

What's worth being clear about is that the income stream is usually worth more than the lump sum — sometimes significantly more. Knowing that before any conversation with a buyback company puts you in a much better position.

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