Feed-in tariff

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events or newly available information. (August 2013)
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A feed-in tariff (FIT, standard offer contract)[1] advanced renewable tariff[2] or renewable
energy payments[3] is a policy mechanism designed to accelerate investment in renewable
energy technologies. It achieves this by offering long-term contracts to renewable energy
producers, typically based on the cost of generation of each technology.[1][4] Rather than pay an
equal amount for energy, however generated, technologies such as wind power, for instance, are
awarded a lower per-kWh price, while technologies such as solar PV[citation needed] and tidal power are
offered a higher price, reflecting costs that are higher at the moment.
In addition, feed-in tariffs often include "tariff degression", a mechanism according to which the
price (or tariff) ratchets down over time. This is done in order to track [4]:p.25 and encourage
technological cost reductions.[1]:p.100[5] The goal of feed-in tariffs is to offer cost-based compensation
to renewable energy producers, providing price certainty and long-term contracts that help
finance renewable energy investments.[4][6]
Contents
[hide]

1Description
o

1.1Compensation
2History

2.1United States

2.2Europe

2.3Germany's Renewable Energy Sources Act

3Effects on electricity rates

4Grid parity

5Policy alternatives and complements

6By country
o

6.1Algeria

6.2Australia

6.3Canada

6.4China

6.5Czech Republic

6.6Egypt

6.7France

6.8Germany

6.9Greece

6.10India

6.11Indonesia

6.12Iran

6.13Ireland

6.14Israel

6.15Italy

6.16Japan

6.17The Netherlands

6.18The Philippines

6.19South Africa

6.20Spain

6.21Switzerland

6.22Thailand

6.23Uganda

6.24Ukraine

6.25United Kingdom

6.26United States

6.27Puerto Rico

7See also

8References

Description[edit]
FITs typically include three key provisions:[7][8]

guaranteed grid access

long-term contracts

cost-based purchase prices