Feed-In Tariff
what are the implications for you?

Feed-in tariffs are simply payments per kilowatt-hour for electricity generated from renewable resources such as solar, wind and hydro (water) by small producers, such as homeowners.

To actually pay the on grid residential consumer who also feed in the surplus production during low consumption/high production hours, special net metering arrangements are needed, (special bi-directional meters). Feed-in tariffs can reduce the pay back time related to the cost of solar energy

Feed in tariffs empower the electricity consumer on his dealing with the electricity utility. It can accelerate the growth of clean energy electricity production because the cycle time for a new residential clean energy generator is a matter of weeks while a new utility scale power plant and new high-voltage power lines take many years from design to the time they are operational. Feed in tariffs are granting money to the one who produces rather than granting energy tax benefits, subject to budget cuts and changes in tax policies.

Electricity Feed Laws are more common in Europe (Germany is probably the European leader in renewable electricity generation and in electricity feed laws) and they regulate permit feed in of clean electricity into the utility network, they define the price per KWh. Usually, there is a time limit in which the law is valid, sometimes the tariff is reduced as years pass.

There is still a political debate in the US and Canada on introducing feed in tariffs. Several states and provinces have reached advance stages of legislation

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