Feed-in tariff

Many countries provide a “feed-in tariff” (FIT) or “standard offer” to subsidize expensive energy sources such as wind, which can not otherwise compete with other sources on price or value. The FIT sets a price that utilities must pay for electricity from, e.g., wind turbines. It also obligates the utilities to accept all wind power whenever it is generated (which, problematically, is determined by the wind rather than actual customer need).

Some states in the USA also provide a “standard offer” for certain facilities.[1]

See also:

• Renewable portfolio standard
• Renewable energy certificates
• Production tax credit