What are Feed In Tariffs (FITs)?

Feed-in-Tariffs (FITs) are government initiatives to provide suppliers of energy generated through some form of renewable power system (e.g. solar PV or wind turbine) with a financial sum based on the kilo-Watt hours (kWh) of energy supplied into the National Grid. FITs are intended to incentivise smaller scale power generation as opposed to the wider scale projects and the Renewable Obligation (RO).

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What are Feed In Tariffs (FITs)?