Einspeisevergütungen

Einspeisevergütungen, often translated as feed-in tariffs, are a policy mechanism designed to promote the development of renewable energy sources. They guarantee a fixed, above-market price for electricity generated from renewable sources that is fed into the national grid. This fixed price is typically set for a long duration, often 20 years, providing investors with a predictable revenue stream and mitigating the financial risks associated with renewable energy projects. The primary goal is to incentivize the installation of solar panels, wind turbines, and other renewable technologies by making them economically attractive compared to conventional energy sources.

The concept originated in Germany and has since been adopted by many other countries. The tariff rates are usually differentiated based on the type of renewable technology, the size of the installation, and sometimes the location. Over time, as the cost of renewable technologies has decreased, feed-in tariffs have also generally been reduced to reflect market realities and to avoid over-subsidization. While effective in accelerating renewable energy deployment, feed-in tariffs can also lead to increased electricity prices for consumers if the costs are passed on. The design and implementation of feed-in tariffs vary significantly across jurisdictions, impacting their effectiveness and cost-efficiency.