feedins

Feed-ins refer to the introduction of electrical power from distributed energy sources into a public electricity grid. This term is used both to describe the physical flow of electricity injected by generators such as rooftop solar, small wind, hydro, and biogas plants, and to denote policy mechanisms that support such injections. In policy contexts, feed-in schemes include feed-in tariffs (FITs) and feed-in premiums, which provide financial incentives for producers by guaranteeing a fixed price or premium for the electricity they generate over a set period.

Key features of feed-in schemes typically include long-term contracts, guaranteed grid access, and a price structure that is separate from or ancillary to wholesale market prices. The revenue certainty offered by these schemes lowers investment risk for small and medium-scale generators, encouraging the deployment of renewable energy capacity. Costs are usually recovered through a levy, surcharge, or increased electricity tariffs, distributed among consumers.

Geographically, feed-in policies gained prominence in Europe during the 1990s and 2000s, with Germany's Renewable Energy Sources Act (EEG) often cited as a landmark. Several other countries adopted similar approaches, adapted to local market conditions, technology costs, and grid needs. Over time, many jurisdictions shifted from fixed FITs to alternative designs such as premium feed-ins, auctions, or hybrid models to balance deployment goals with affordability and market integration.

Current trends include transitions to auction-based mechanisms, integration with capacity or balancing markets, and reforms to address grid constraints and cost-sharing. Critics argue that high tariffs can raise consumer costs, while supporters emphasize accelerated deployment and emissions reductions.