Photovoltaic Energy incentives in Europe

The Feed-in Tariff (FIT) is an bonus made to recompense the production of renewable energy both by households and investors. Power companies are mandated to purchase back, at rates higher than the market, power produced from renewable sources; such as wind, thermal solar, photovoltaic solar, biomass, hydro and geothermal. This tariff is also named Feed-in Law, Solar Premium, Renewable Tariff or Renewable Energy Payments. FIT helps make the production of renewable energy economically viable. Usually governments assure the tariff for up to 15, 20 or even 25 years from the date of the installation.

The increase of sources of renewable energy is judged crucial to stopping climate change. Production of energy from renewable sources keep beeing more expensive than the cost of producing energy from fossil fuels. FIT tries to counteract this difference, thus making more attractive renewable energy installations, by requiring the power grid to buy back and redistribute the energy made by renewable installations. The difference in cost is spread over all of the customers of the power grid. FIT requires net metering regulation to account for power purchased from the grid and energy sold to the grid.

FIT is considered more effective than quotas imposed to power companies, because it leverages the morals of people. What follows is a simplified synopsis of FIT policies by some European countries.