Feed-in Tariffs (FITs)

Feed-in tariff is one of the policies designed to encourage renewable energy investments. The scheme offers a fixed tariff to renewable system owners for the electricity generated during a fixed contract period, ranging usually between 15 to 20 years. FITs have proven to be the primary tool for market building as they offer both investment security, and output-based incentives.

Last Update: 03/2016

Size LimitEUR/kWhCountry/
Size LimitEUR/kWh
Bulgaria< 30kW0,084Japan< 20kW0,464
Canada≥ 20kW0,185
Nova Scotia< 50kW0,340Lithuania< 10kW0,081
> 50kW0,08911-350kW0,075
China (off-grid)0,2–3kW 0,140> 351kW0,064
(on-grid)5-20kW0,110Portugal< 3,68kW0,432
Chinese Taipei1-20kW0,237Slovenia< 1 MW0,095
> 20kW0,078Switzerland< 10MW0,195
Denmark< 10kW0,330UK< 100kW0,110
Greece< 50kW0,250 Hawaii< 20kW0,198
Italy< 1MW0,30020-100kW0,125
Israel< 15kW0,340Indiana3-10kW0,209
Vermont< 15kW0,200

Tax Credits

Investment tax credit is a sum, in this case the cost of the small wind installation, subtracted from the total amount that a taxpayer is obligated to pay to the state. Various small wind tax credit programs can be found around the world. In the United States alone, 11 states offer property tax incentives and 6 states offer sales tax incentives for small wind. The number of programs, however, has not increased since 1999. Investment tax credits encourage investments in renewable energy and the sales of small wind installations; however, they are not encouraging efficiency as they are not bound to the output of the small wind turbines.

Net Metering

Net metering is an energy policy that remunerates the retail price of all or part of the electricity generated from renewable facilities to their owners. The policy, however, requires sufficient retail electricity price in order to be practical. For example, the implementation of such policy in Denmark with relatively high retail price in the range of around 0,40 USD/kWh would be much more effective than net metering in countries like the United States with relatively low retail prices going down to as low as 0,11 USD/kWh.