Feed-in Tariff (FiT)

A Feed-in Tariff (FiT) is a policy mechanism that guarantees renewable energy producers, like homeowners with solar panels or wind farms, a fixed, above-market price for the electricity they generate and supply to the grid. This encourages investment in clean energy by providing stable revenue over a set period. Essentially, it ensures producers are compensated fairly, motivating more development of renewable energy sources while helping society shift toward sustainable power generation.