Feed-in Tariff

A Feed-in Tariff (FiT) is a policy that encourages the generation of renewable energy by offering fixed payments to energy producers who feed electricity back into the grid. When individuals or companies install solar panels, wind turbines, or other renewable systems, they receive a guaranteed, above-market rate for the power they generate and supply to the grid over a set period. This setup helps promote clean energy, reduces greenhouse gas emissions, and provides financial incentives for investments in renewable technology. Essentially, FiT ensures producers are fairly compensated, making renewable energy projects more economically viable.