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Definition
A Feed-in Tariff (FiT) is a solar policy that pays system owners a set, usually above-market rate for every kilowatt-hour (kWh) they export to the grid, locked in under a long-term contract. This makes your solar earnings predictable for years, since the per-kWh price is fixed regardless of fluctuating market or retail electricity rates. FiTs are common internationally and appear in some U.S. utility programs, though they are far less widespread here than net metering. The key difference is how you're paid: a FiT pays a defined contract rate per exported kWh, while net metering credits you at the retail rate for the energy you offset. Whether a FiT is available to you depends entirely on your utility and state policy, so terms, rates, and contract lengths vary and you should confirm program specifics before counting on this income.
Also Known As
FiT
Feed-in Tariff program
renewable energy payment
solar export tariff
Used in Context
- Under a feed-in tariff, the homeowner signs a long-term contract locking in a fixed per-kWh payment for all solar energy sent to the grid.
- Because her utility offered a feed-in tariff instead of net metering, she was paid a set export rate rather than retail credits.
- When a Dreamy Leads solar shopper asked how export payments work, the installer explained that a feed-in tariff pays a guaranteed rate while net metering credits at retail.
How is a feed-in tariff different from net metering?
A feed-in tariff pays a set, usually above-market rate for every kWh you export under a long-term contract. Net metering instead credits you at the retail rate for the energy your system offsets. The pricing structure and contract terms differ, so confirm which your utility offers.
Are feed-in tariffs available in the United States?
Feed-in tariffs are common internationally and exist in some U.S. utility programs, but they're less widespread here than net metering. Availability depends on your specific utility and state policy, so check directly with your provider to see whether a FiT program applies to you.
Is the feed-in tariff rate guaranteed for the long term?
Feed-in tariffs typically pay a set rate per exported kWh under a long-term contract, which makes earnings predictable. However, exact rates, contract lengths, and terms vary by program and utility. Always review your specific contract before relying on this income.
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