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Sovereign Secure Feed in Tariffs (F.I.T.)

Perhaps the most effective policy response has been the widespread introduction of Sovereign Secure Feed-In Tariffs. Feed-in Tariffs pay renewable energy producers a set rate for each unit of electricity fed into the national grid at a fixed price for a minimum term, usually 20 years, and backed by EU legislation. Effectively, it’s a price premium designed to attract investment into renewable energy sources and to reward efficient energy production.

This ensures that renewable energy can be profitable now, even while production costs exceed those of fossil fuels.

Currently over 119 countries have a renewable energy policy with 59 of these having implemented Feed-in Tariffs. Instead of subsidising the construction costs of renewable energy production facilities, Feed-in Tariffs reward the output of energy
itself through a high government guaranteed income streams, guaranteed income streams and guaranteed demand so that efficient producers can achieve an attractive financial result. Best of all the costs of these premium prices paid to the producers of
green energy are paid for via a levy on all electricity consumers. As they are not paid for from government budgets they have proved immune to the bailouts in Ireland, Portugal and Greece.

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