Feed-in Tariff policy guarantees payment for solar energy produced using your array. It allows you to receive a guaranteed price for the energy you produce and also access to grid services. This policy promotes renewable energies and is easy to use.
Feed in tariffs can guarantee payment
Feed-in tariffs allow producers of renewable energy to be paid for their efforts. These schemes have been around for years in Europe to support the growth and development of renewable energy. They differ payments according to the size of the technology used and are intended to decrease over the long-term. Germany, for instance has used feed-in rates for more than a century to promote renewable energy.
They encourage the use of renewable energy sources
Feed-in tariffs are a mechanism to encourage the development renewable energy sources by lowering their prices. This helps renewable energy sources compete with conventional energy resources. Once renewable energy has achieved this level of cost competitiveness, feed in tariffs are no longer required. Feeding in tariffs could be short-term as well as long-term, depending upon the country's ambition. The main goal is to lower greenhouse gas emissions while promoting renewable energy development.
These can be used in combination with other solar incentives
Feed in tariffs allow residential solar customers to offer their excess solar power at a discounted rate to the market rate. Originally introduced in 2006, this incentive has helped the solar industry expand by 50 percent annually. Feed-in tariffs can be applied to both residential and commercial solar installations.
They can be used as a policy instrument.
Feeding in tariffs have been proven to be a powerful policy tool for promoting renewable energy technology and production. They guarantee grid access, long term contracts, and a guaranteed cost for the energy produced. They ensure producers are properly compensated for the energy production. This policy instrument has been utilized in a number of countries all over the world.
They are administered by the government
To encourage renewable energy production, the government implemented feed-in tariffs. These programs ensure grid access, long term contracts, and price-based purchases for energy producers. They require energy producers that they produce energy from renewable resources, as per the Retail Price Index. These programs are used worldwide, as well as in the United States.
They are a financial inefficient way of saving carbon
The feed-in tariff system pays you for the excess electricity you generate. It is calculated on your home consumption and is limited to 50% of total generation. You can theoretically store excess electricity to lower your electricity bills. But this approach is not without its problems.