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Feed in Tariff (FIT)

A feed in tariff or FIT is a fee, paid to an individual or business for supply energy to the electrical grid rather than removing energy from it. These tariffs apply to a number of alternative energy sources such as solar, wind, hydro, micro combined heat and power, and biofuel (anaerobic digesters). They are designed to encourage individuals to adopt more environmentally friendly energy sources. In most cases, a system to return energy to the grid will have to be inspected and certified before tariffs are paid. Only certain systems that were installed during certain time periods are eligible.

Even though the utility companies in some locations are keeping track of and paying the tariffs, the money for all such programs comes from the government. FITs are location dependent and vary in how they are implemented and how much money they pay from one country to another. In the United States, FITs vary from state to state.

Countries Offering FITs

Country

Approach

Duration

Australia

National mandates and guidelines, but State implementation.

Varies state to state

Bulgaria

National implementation

25 years

Canada

National and provincial implementations

Varies

Czech Republic

National implementation

20 years

China

National implementation

N/A

France

National implementation

20 years

Germany

National implementation

20 years

Greece

National implementation

20 years

India

National guidelines with State implementations

10 years

Italy

National implementation

30 years

Japan (ended 2005)

National implementation (Ended 2005)

N/A

Macedonia

National implementation

20 years

Serbia

National implementation

12 years

Slovakia

National implementation

15 years

South Korea

National implementation

15 years

Spain

National implementation

N/A

Taiwan

National implementation

N/A

Turkey

National implementation

20 years (10 and 10)

United Kingdom

National implementation

20 – 25 years

United States

State implementation with attempts to comply with national law

N/A

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