Feed-in Tariffs (FiTs): FiTs are a financial incentive provided by electricity retailers to solar system owners for exporting excess electricity generated by their solar panels back to the grid. The rate at which the excess electricity is purchased by the retailer is usually higher than the retail electricity rate. This encourages solar system owners to generate more electricity and reduces their reliance on the grid.

May 8, 2024by Luke0

FiTs are typically set for a fixed period of time, such as 10-20 years, and are designed to provide a guaranteed income stream to Solar system owners, making it a more attractive investment. The payment for excess electricity is typically made on a regular basis, such as monthly or quarterly, and is based on the amount of electricity exported to the grid.

FiTs have been widely used around the world to promote the adoption of renewable energy sources, such as Solar power, and to help reduce greenhouse gas emissions. In addition to providing a financial incentive for Solar system owners, FiTs also help to offset the higher upfront costs of installing Solar panels and can help to make Solar power more accessible to a wider range of consumers.

Overall, FiTs are an effective way to incentivize the adoption of Solar power and other renewable energy sources, and can play a key role in transitioning towards a more sustainable and low-carbon energy system.

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