Glossaria.net

Glossary Renewable energy / Term

Feed-in-Tariff (FIT)

A price-based incentive mechanism for renewable energies, which grants the producer an "all-inclusive tariff." The payment of this tariff is guaranteed for a period of time linked to the economic life of the relevant renewable project.


Money paid to a customer by a power company for excess electricity generated by a renewable energy source. The renewable energy source is most often either solar or wind generated electricity. This excess is connected to the power lines at the customer's residence, and most commonly on the customer's side of the electric meter. For example, if you had a solar electric system installed on your home, and had signed a feed-in-tariff agreeement ("FIT") with your power company, you could find the power company selling electricity to you at one price per kilowatt-hour, but BUYING the excess from you for more than they sell it to you at retail. Feed-in-tariffs are implemented to encourage end users to install renewable energy equipment and sell excess renewable energy back to the utility company.

Permanent link Feed-in-Tariff (FIT) - Modification date 2023-02-17 - Creation date 2021-06-26


< Feed-In Premium (FIP) Glossary / Renewable energy Filament >