Feed-in Tariffs (FiTs)

Feed-in Tariffs (FiTs) are measures used by governments to encourage renewable energy production. They guarantee renewable energy producers, like homeowners or companies with solar panels, a fixed, premium rate for the electricity they generate and supply to the grid over a certain period. This ensures that investors receive a secure return, making renewable projects more financially viable. FiTs help increase clean energy capacity, reduce reliance on fossil fuels, and promote sustainability. Essentially, they create financial incentives for producing renewable energy, supporting the transition to greener power sources.