Feed In Tariff

Feed-in-tariff (FiT) is a special price paid by the electricity utility to power generators for the power that the generators feed into the grid. The FiT prices are usually higher than what a typical power generator (say from a conventional thermal power plant) will get for supplying power to the grid. The FiT is used as a financial incentive to encourage investment in renewable power, so that renewable energy can scale to much larger sizes quicker.