A feed-in tariff, or FiT, is designed as an incentive to energy producers to develop renewable energy sources, and usually consists of a rate, fixed by legislation, that guarantees higher returns than conventional energy sources. For example, if energy from fossil fuel generation were billed to customers 0.10 cents per kilowatt hour, energy from renewables would likely command 0.20 cents or more for the same kilowatt hour. The feed-in tariff is already widely used in Germany, and similar programs in Greece, Italy, Turkey and South Korea have boosted renewable energy markets.
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Feed-in Tariffs, Solar Boon or Boondoggle