Solar Feed-in Tariffs (FITs)

Solar Feed-in Tariffs (FITs)


A solar feed-in tariff is a requirement by the government for utility companies to pay property owners for electricity production from renewable sources. They are required to pay a set rate for a set period of time. If this rate and time period are long enough, business owners can determine whether or not it is profitable to deploy solar to collect Feed-in Tariffs.

Feed-in Tariffs are popular in Germany and Spain, but they are a relatively new concept to the United States.

Net metering is similar to Feed-in Tariffs. Net metering is a way that utility companies can compensate homeowners for electricity put onto the grid. If a homeowners solar panels are producing more electricity than the home is comsuming, the meter spins backwards and the homeowner receives a credit for electricity production.

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