FEEDin

Feed-in, in energy policy, refers to mechanisms that promote the generation of renewable electricity by guaranteeing a predictable revenue stream to producers for the power they feed into the grid. The most common form is the feed-in tariff (FIT), where eligible projects receive a fixed price per kilowatt-hour for a defined contract period, often 15 to 25 years. Tariffs are typically funded through sector-wide charges or taxes and are technology-specific to reflect costs and policy priorities.

How it works varies by program. In a fixed feed-in tariff, the set rate is paid regardless of market prices. In a feed-in premium system, producers receive the market price plus an additional premium. Some arrangements compensate all produced electricity (gross feed-in), while others compensate only the portion fed to the grid after self-consumption (net feed-in). Eligibility usually targets smaller, newer, or renewable technologies (such as solar, wind, small hydro), with priority grid access and streamlined permitting. Tariffs may decline over time (degression) to reflect falling technology costs and to encourage efficiency.

History and use. Feed-in policies emerged in several countries in the 1990s and became widely adopted in Europe and beyond as a way to spur renewable deployment, reduce greenhouse gas emissions, and diversify energy supply. They coexist with other support schemes, such as auctions or market-based policies, in various jurisdictions.

Criticisms and considerations. Critics point to potential burdens on consumers, budgetary risk, and reduced competition if rates are set too high. Proponents argue that well-designed FITs provide price stability and investor confidence, accelerating deployment of renewables and helping to achieve climate and energy security goals.