Feed-in Tariffs: The Basics
A Feed-in Tariff or FIT is a fixed price contract that utilities pay to electricity generators for producing renewable energy. It consists of a pre-defined PPA (Power Purchase Agreement) and typically offers a guarantee of:
1. Payments to project owners for the total amount of renewable electricity they produce;
2. Access to the electricity grid; and
3. Stable, long-term contracts (20+ years)
FIT Programs are government policies implemented at the local, state, or national level to spur the development and deployment of renewable energy projects. These programs typically mandate that utilities must provide a standard energy contract and pay the pre-determined price for any project that meets all the criteria for energy type, size, connection points, etc.
The prices for each type of energy (solar, wind, biomass, etc) are set by government agencies and are locked in for the life of the contract.
For a more complete summary of Feed-In-Tariffs and the reasons to use them, see our FIT Summary Page.
For answers to Frequently Asked Questions on FITs, see our FIT FAQ Page.
Other Web Sites on Feed-in Tariffs
There are several web sites that feature articles on Feed-in Tariffs, renewable tariff design, and news updates on the movement for feed-in tariffs in North America.
- German Experience with its Renewable Energy Sources Act
- European Feed-in Cooperation
- International Feed-in Tariff News Group
- Californians for Feed-in Tariffs News Group
- World Future Council's Feed-in Tariff Pages
- WFC's Feed-in Tariff Design Guide
- The Feed-In Tariff Channel--Audio and video interviews with policy leaders by Marc Strassman (Note: a video player will install on your browser)
- Green Thoughts: Sustainability, Renewable Energy and Marketing by Michael Hoexter
- Green Energy War: Former California Energy Commisioner John Geesman blogs on global climate and energy politics
- the Alliance for Renewable Energy: An alliance of policymakers, renewable energy experts, citizens, research institutions, and large and small businesses promoting the use of Feed-in Tariffs (Renewable Energy Payments) in North America.
- Florida Alliance for Renewable Energy
- Wind-works.org: One of the world’s most extensive collections of articles and reports on Feed-in Tariffs.



