Make A Wind Turbine

The Feed-in Tariff (FIT) is an motivator created to remunerate the production of renewable energy both by households and investors. Power companies are asked to pay back, at rates higher than the market, power coming from renewable sources; such as wind, thermal solar, PV solar, biomass, hydro and geothermal. This tariff goes also under the name of Feed-in Law, Solar Premium, Renewable Tariff or Renewable Energy Payments. FIT helps make the production of renewable energy competitive. Usually governments assure the tariff for up to 15, 20 or even 25 years from the date of the putting in place.

The progress of sources of renewable energy is judged essential to preventing climate change. Producing renewable energy still costs more than the cost of producing energy from traditional supplies. FIT tries to balance this difference, thus making more attractive renewable energy installations, by requiring the power grid to buy back and redistribute the energy made by renewable installations. The difference in cost is spread over all of the customers of the power company. FIT requires net metering regulation to account for power purchased from the grid and energy sold to the grid.

FIT is regarded as more effective than quotas imposed to power companies, because it leverages the ethical motive of people. What follows is a simplified synopsis of FIT policies by some European countries.

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