A feed-in-tariff is a type of renewable energy policy in which the government will pay a household, business, etc. to produce clean energy. It is a long-term contract (typically 20 – 25 years) guaranteeing payment by the government (payments are made at least quarterly and will come from your Utility). Governments use feed-in-tariffs to promote investments in clean energy for energy security and to avoid green house gas emissions. The feed-in-tariff is used primarily in Europe.
