The Benefits of Feed in Tariffs

With the ever increasing oil and gas prices, the effects of green house gases increasing the rate of global warming, countries around the world have realized the necessity of adopting environmentally friendly energy practices. Many governments are now promoting and implementing the use of non-polluting renewable energy resources. One such energy program is Feed-In Tariffs.

A Feed-In Tariff is a rate that consumers and businesses pay for electricity which is returned to the electricity grid from a renewable energy source such as solar energy, hydro energy, and wind turbine energy. The purpose of the tariff is to increase the use of renewable and clean energy sources. A power company will buy energy produced from renewable energy sources at rates established by the government. The rates tend to vary among different governments. Currently, there are feed-in tariff regulations for renewable energy in more than 40 countries.

There are many benefits of using feed-in tariff programs. There is a guaranteed rate payment for all electricity that is produced. There is also a guaranteed price for any electricity conveyed onto the electricity grid. As well, feed-in tariff programs encourage the development and implementation of renewable energy sources which reduces dependence on oil and other polluting energy sources. Less green gases are being emitted in the atmosphere which lessens the impact of climate change. It also helps a community secure their own supply of energy such as when they use hydro, solar, or wind, to power homes and businesses. As well, it reduces dependence on unfriendly oil producing countries which helps with improving global and domestic security.

Moving to renewable and environmentally friendly energy sources will also help to create a new ‘green’ industry, which in turn will create millions of jobs. As well, there is more technology driven innovations which is beneficial to everyone. During these difficult economic times, a boost to the economy is very much needed. The amount of money you can save will depend on the amount of electricity that you produce and how you use this electricity in your home or business. For instance, if you can minimize your electricity consumption during the day, you will save a lot of money. By creating an environmentally sustainable as well as a job sustainable future, we are ensuring a bright and healthy future for our children.

The Feed-in Tariff system has proven to be an effective ‘green energy’ program with more countries now implementing the program. Canada, United States, Australia, Germany, Denmark, and Spain are a few of the major countries embracing feed-in tariffs. Although the criteria and measures used in the programs can vary, they are all having a positive impact when it comes to energy conservation, reducing the emission of green house gases, and increasing the use of renewable energy sources. Feed-In Tariffs have been connected with the increased production and use of solar power and wind turbine power. With so much concern about the state of the planet and its natural resources, it is expected that more Feed-In Tariffs programs are going to be established in many more countries around the world. It will become an essential component of slowing climate change and making the planet much healthier.