Policy Profile

Feed-in Tariff

Policy description:

While renewable portfolio standards (RPSs), renewable energy carve-outs, and feed-in tariffs (FITs) are not mutually exclusive, they generally refer to different ways in which a state can facilitate investment in renewable energy. An RPS or a technology carve-out refers to specific requirements on utilities to invest in a certain amount of a technology. A FIT, also referred to as a “Standard Offer Contract”, is a policy that pays a producer a set amount for “feeding in” or delivering power to the grid. Because a FIT puts in place a set incentive for delivering power to the grid and because these programs tend to be structured like a traditional Power Purchase Agreement (PPA) that utilities already use, many refer to these programs as a “market based” approach for encouraging the development of renewable energy resources. For more information, see the full policy brief.

Download Full Policy Brief View Policy Component Questions

  1. Does the policy exist?
  2. Is the policy mandatory?
  3. Is the policy available state wide?
  4. Is the FIT available to multiple renewable energy technologies?
  5. Is there an established, transparent mechanism for driving down costs of renewable installations and program costs?