What is the goal of the Feed-in Tariff (FIT) for renewable energy?

The goal of the Feed-in Tariff (FIT) for renewable energy is to provide income certainty for renewable energy producers. This mechanism ensures that producers of renewable energy receive a fixed payment for the electricity they generate over a specified period. By guaranteeing a stable income stream, FIT encourages investments in renewable energy technologies. This financial support helps to offset the often higher initial costs associated with renewable energy projects, making them more attractive to investors.

Additionally, income certainty fosters long-term planning for renewable energy producers, which can lead to increased development and deployment of renewable energy sources, ultimately contributing to a larger share of clean energy in the overall energy mix. Other options do not align with the core purpose of FIT; for example, reducing costs or limiting the use of renewable energy contradicts the primary aim of promoting and expanding renewable energy sources.