Policymaker’s guide to feed-in tariff policy design


Feed-in tariffs (FITs) are the most widely used policy in the world for accelerating renewable energy (RE) deployment, accounting for a greater share of RE development than either tax incentives or renewable portfolio standard (RPS) policies.

For example, in the European Union (EU), FIT policies have led to the deployment of more than 15,000 MW of solar photovoltaic (PV) power and more than 55,000 MW of wind power between 2000 and the end of 2009. In total, FITs are responsible for approximately 75 percent of global PV and 45 percent of global wind deployment, according to Deutsche Bank.

This policymaker’s guide from the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), provides a detailed analysis of FIT policy design and implementation and identifies a set of best practices that have been effective at quickly stimulating the deployment of large amounts of RE generation. Although the discussion is aimed primarily at decision makers who have decided that a FIT policy best suits their needs, exploration of FIT policies can also help inform a choice among alternative renewable energy policies.

Topics covered include:

  • FIT policy background
  • Application of FIT policies in the U.S.
  • FIT payment design options
  • FIT policy implementation options
  • Funding FIT policy
  • Best practice for FIT policy design and implementation

Click to view A Policymaker’s Guide to Feed-in Tariff Policy Design