what is a feed in tariff fit 
a feed in tariff is a policy tool that provides renewable energy producers with an above market price for what they deliver to the grid these policies are usually designed to promote investment in renewable energy sources understanding feed in tariffs fits feed in tariffs are used to promote renewable energy sources in the early stages of their development when production is often not economically feasible feed in tariffs usually involve long term agreements and prices tied to the cost of production of the energy in question the long term contracts and guaranteed prices shelter producers from some of the risks inherent in renewable energy production encouraging investment and development that otherwise might not take place feed in tariffs and small energy producersanyone who produces renewable energy is eligible for a feed in tariff but those who take advantage of it are often not commercial energy producers they can include homeowners business owners farmers and private investors generally fits have three provisions one of the first feed in tariffs was implemented in the u s by the carter administration in 1978 but they are now used around the world history of feed in tariffsthe u s was a pioneer in feed in tariffs its first was implemented by the carter administration in 1978 in response to the energy crisis of the 1970s which famously created long lines at gas pumps known as the national energy act the fit was meant to promote energy conservation along with the development of renewable energy such as solar and wind power the growth in use of fitssince then fits have become widely used internationally japan germany and china have all used them successfully over the past decade or so and in total dozens of countries have used them to one degree or another to drive the development of renewable energy it is estimated that about three fourths of global solar energy is linked to feed in tariffs a shift away from fitsdespite the successful role feed in tariffs have played in promoting the development of renewable energy some countries are turning away from relying on them instead seeking more market driven sources of support as well as more control over the supply of renewable energy that is produced that includes germany and china two of the more prominent fit success stories nonetheless fits still play a vital role in the development of renewable energy resources around the globe 