Overview of international feed-in tariffs
Feed-in tariffs are policy mechanisms designed to accelerate investment in renewable energy technologies. This is achieved by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology.
In addition, feed-in tariffs often include "tariff degression", a mechanism according to which the price (or tariff) ratchets down over time. This is done in order to track and encourage technological cost reductions. The goal of feed-in tariffs is to offer cost-based compensation to renewable energy producers, providing the price certainty and long-term contracts that help finance renewable energy investments.
Feed-in tariffs typically include three key provisions:
- guaranteed grid access
- long-term contracts for the electricity produced
- purchase prices based on the cost of generation
Feed-in tariff policies have been enacted in over 50 countries, presented here are the rates for: