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What Is A Feed-in Tariff

A feed-in tariff is sometimes referred to as a FiT, and it is something that is worth considering if you are one of the relatively small percentage of people who generates energy themselves, through a micro-generation project.

The idea is that if you create your own energy, perhaps through using solar PV or maybe having some sort of wind turbine, that you won't need all the energy you generate or at least there will be times where you won't need that energy (for instance when you are away on holiday).

Rather than waste it, wouldn't it be nice if that energy that you don't require could be used by others, and even better if you could get paid for it or perhaps to offset your own bill by building up credits against the energy that you put back into the grid.

This is where feed-in tariffs come in. This is an oblifation on grid utilities to buy in renewable electricity from eligible participants. The rate you get paid for the energy that you feed back into the grid depends from country to country, the type of technology, where it is installed, the size of the project and so on and so forth.

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