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Feed in Tariff meaning

Published by a LexisNexis Energy expert
What does Feed in Tariff mean?
In energy and regulatory practice, a feed-in tariff (FiT) is a guaranteed per‑kWh payment to small‑scale renewable electricity generators for electricity they generate and/or export to the grid. It is a price‑support mechanism used in project contracts and regulation to underwrite microgeneration revenues and accelerate deployment of renewable energy. In Great Britain (England, Wales and Scotland), FiT was a statutory scheme under the Energy Act 2008 and the Feed-in Tariffs Order 2012, administered by Ofgem. It closed to new applicants on 31 March 2019; accredited installations continue to receive generation and (where applicable) export payments for their remaining terms. For new installations, export is remunerated under the Smart Export Guarantee (SEG) via licensed suppliers. In Northern Ireland, the GB FiT did not apply; support has chiefly been delivered through the Northern Ireland Renewables Obligation (NIRO), with export payments available under supplier tariffs rather than a statutory FiT. In Ireland, feed-in tariff commonly describes the historic REFIT schemes (now closed) and, for microgeneration, payments under the Micro‑generation Support Scheme (including the Clean Export Guarantee and Clean Export Premium). The term is descriptive: eligibility, rates and duration are set by the relevant legislation, regulatory decisions and supply contracts.
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PRACTICE NOTES
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PRACTICE NOTES
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