What is a Feed-in Tariff (FIT) designed to promote?

A Feed-in Tariff (FIT) is designed to promote renewable energy production by guaranteeing a fixed payment for the energy produced by renewable sources, such as solar, wind, or biomass. This mechanism incentivizes individuals and companies to invest in and generate energy from renewable resources, making it more economically viable. By ensuring a consistent income for producers of renewable energy, FITs help to encourage the deployment of sustainable energy technologies and support the transition towards a more sustainable energy infrastructure.

The FIT system is particularly effective in supporting small-scale energy producers and integrating alternative energy into the existing grid. It is a crucial component of many countries' strategies to increase the share of renewable energy in their energy mix, reduce greenhouse gas emissions, and decrease reliance on fossil fuels. Promoting renewable energy production contributes to energy independence and helps address climate change by reducing the carbon footprint associated with energy generation.