Policy
A Feed-in Tariff (FiT) is a policy mechanism that offers renewable energy producers a guaranteed payment rate for the electricity they feed into the grid. Under a FiT, utility companies are required (usually by law or regulation) to buy electricity from renewable sources (solar, wind, etc.) at a set price (often above market rate) for a fixed period, providing long-term revenue certainty. FiTs have been used worldwide to accelerate investment in renewables by ensuring developers can achieve a reasonable return, making projects more bankable and attractive to investors.