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Energy & Renewables vocabulary · Energy Markets and Tariffs

Feed-in tariff

Meaning in energy & renewables, with examples

nounCommon term

In energy & renewables, feed-in tariff means: A support scheme that guarantees renewable energy producers a fixed price for each kWh they feed into the grid, usually for 10 to 20 years.

In Turkish: alım garantisi, sabit alım fiyatı, YEKDEM fiyatı

How it is used

Shortened to FiT. Feed-in tariffs helped launch solar and wind in many countries; later many moved to auctions, feed-in premiums or contracts for difference. Projects qualify for, receive or lose the feed-in tariff, and the rate is set per kWh or MWh.

Example sentences

  1. Under the old feed-in tariff, the plant sells every megawatt-hour at a fixed price until 2030.

  2. Several countries replaced feed-in tariffs with competitive auctions.

Common collocations

  • feed-in tariff scheme
  • qualify for a feed-in tariff
  • feed-in tariff rate
  • feed-in premium
  • tariffThe set of prices and rules that decides how much a customer pays for electricity or gas, for example per kWh, per month or by time of day.
  • subsidyMoney or other financial help that a government gives to lower the cost of energy for consumers or to support particular technologies or producers.
  • power purchase agreementA long-term contract in which a buyer, such as a utility or a large company, agrees to purchase electricity from a specific power project at an agreed price.
  • net meteringA billing system in which electricity that a customer's solar panels send to the grid is subtracted from the electricity they take from it, so they pay only for the difference.

More terms: Energy Markets and Tariffs

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