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Innovative Feed-In Tariff Designs that Limit Policy Costs

Innovative Feed-In Tariff Designs that Limit Policy Costs

File: Innovative Feed-In Tariff Designs that Limit Policy Costs

Date: 6/30/2011

Feed-in tariffs (FITs) are the most prevalent policy used globally to reduce development risks, cut financing costs, and grow the renewable energy industry. However, concerns over escalating costs in jurisdictions with FIT policies have led to increased attention on cost control. Using case studies and market-focused analysis, this report from the National Renewable Energy Laboratory (NREL) examines strengths and weaknesses of three cost-containment tools: (1) caps, (2) payment level adjustment mechanisms, and (3) auction-based designs. The report provides useful insights on containing costs for policymakers and regulators in the United States and other areas where FIT policies are in development.

This information was last updated on July 18, 2011