Feed-in tariffs (FIT) are a policy mechanism designed to accelerate investment in renewable energy technologies. Producers of renewable energy are paid a set rate for the electricity they produce, usually differentiated according to the technology used (wind, solar, biomass, et.al.) and the size of the installation.
Over the past decade, the FIT is credited for the rapid deployment of wind and solar power among world renewable energy leaders Denmark, Germany and Spain.
This paper will examine the FIT within the context of real-world experiences, and make a case that the U.S. needs a nationwide FIT to kick-start the renewable energy industry, restore U.S. leadership in this space, and accelerate expansion of the renewable industry worldwide.