How does a feed-in tariff work?

A feed-in tariff (FiT) is a tariff paid by electricity providers to homeowners and businesses for exporting excess power to the grid. Your electricity plan will include a set rate that your energy providers will pay you for every kWh you export. You receive the amount owed as a credit on your electricity bill. It increasingly makes more sense to store excess electricity in a battery rather than export it to the grid, as FiTs have decreased dramatically over recent years.