Summary
The report describes Feed-in Tariffs (FITs) as a policy tool to accelerate renewable energy deployment by providing guaranteed, long-term payment rates and grid access to producers. It highlights successful implementations in Denmark and Germany, while noting that Spain's high rates led to overinvestment and a subsequent global drop in solar panel prices. In the US, the report notes a lack of federal policy but identifies local efforts in Gainesville, Florida, and California, concluding with design recommendations such as using trial phases and binding caps to avoid windfall profits.
Key insights
- Feed-in Tariffs (FITs) accelerate renewable energy deployment by providing three core components: cash payments per kilowatt hour (kWh) that ensure a reasonable rate of return, long-term power purchasing agreements typically spanning 15 to 25 years, and guaranteed access to the electrical grid.
- FIT policies in Europe have driven significant industry growth; Denmark's program helped it become a world leader in wind energy, with installed capacity growing from 500 MW to 3,000 MW between 1993 and 2003. Germany used FITs to reach its 2010 target of 12.5 percent renewable energy by 2007 and developed the world's largest photovoltaic (PV) solar market.
Cite the original document
- APA
- Environmental and Energy Study Institute (2010). Feed‐in Tariffs. https://www.eesi.org/files/feedintariff_033110.pdf
- Chicago
- Environmental and Energy Study Institute. Feed‐in Tariffs. 2010. https://www.eesi.org/files/feedintariff_033110.pdf.
- Wikipedia
- {{cite report |author=Environmental and Energy Study Institute |title=Feed‐in Tariffs |date=March 2010 |url=https://www.eesi.org/files/feedintariff_033110.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{environmentalandenergystudyinstitute2010feedin, author = {{Environmental and Energy Study Institute}}, title = {{Feed‐in Tariffs}}, institution = {Environmental and Energy Study Institute}, year = {2010}, month = mar, url = {https://www.eesi.org/files/feedintariff_033110.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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