what is a feed in tariff system

Best answer


A feed-in tariff (FIT) is a policy designed to support the development of renewable energy sources by providing a guaranteed,above-market price for producers.FITs usually involve long-term contracts,from 15 to 20 years.FITs are common in the U.S. and around the world,used most notably in Germany and Japan.

People also ask


  • What is the meaning of feed-in tariff-(FIT)?

  • DEFINITION of ‘Feed-In Tariff – (FIT) ‘. A feed-in tariff is an economic policy created to promote active investment in and production of renewable energy sources. BREAKING DOWN ‘Feed-In Tariff – (FIT) ‘. Feed-in tariffs typically make use of long-term agreements and pricing tied to costs of production for renewable energy producers.

  • Are feed-in tariffs available in the US?

  • Feed-in tariffs are still relatively new in the United States and not available everywhere. Our Solar Consultants tell you if feed-in tariffs are available to you and if a FIT is the best option to get you huge savings on your electricity bill by switching to home solar power.

  • What is a vehicle-to-grid feed-in tariff?

  • Some energy companies are trialling feed-in tariffs of a slightly different kind, using electric cars. Dubbing these schemes ‘vehicle-to-grid’, they are designed to reward careful users and take strain off the country’s power network at times of peak usage.

  • What is the difference between the feed-in tariff and SEG?

  • The Feed-in Tariff scheme ended on April 1, 2019. FIT tariffs pay you for the energy you generate, and sell back to the grid. You can still get FIT payments if you signed up before the deadline. The Smart Export Guarantee has replaced the FIT. Under the SEG you will only be paid for the renewable energy you export back to the grid.

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