feed-in tariff
C1Technical / Policy / Business / Environmental
Definition
Meaning
A government policy that pays individuals or businesses for the renewable electricity they generate and supply back to the national grid.
A financial incentive mechanism designed to accelerate investment in renewable energy technologies by guaranteeing a premium price per kilowatt-hour for the power they feed into the electricity network.
Linguistics
Semantic Notes
This is a fixed compound noun. It refers specifically to a policy instrument and not a general tariff or fee. The term is often associated with solar panels and wind turbines.
Dialectal Variation
British vs American Usage
Differences
The term is used identically in both variants. The concept is more commonly discussed in UK/EU policy contexts, but the term itself is standard in American technical discourse.
Connotations
Neutral policy/economics term in both. May carry positive connotations among environmental advocates and negative connotations among critics of subsidy schemes.
Frequency
Higher frequency in UK/European English due to earlier and more widespread adoption of such policies. Increasing in American English with growing state-level renewable energy policies.
Vocabulary
Collocations
Grammar
Valency Patterns
The government introduced a feed-in tariff for solar energy.Homeowners benefit from the feed-in tariff.The feed-in tariff applies to wind power.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “None. It is a technical term, not idiomatic.”
Usage
Context Usage
Business
The CFO reviewed the project's ROI, factoring in the long-term revenue from the feed-in tariff.
Academic
The paper analyses the impact of feed-in tariffs on the diffusion of photovoltaic technology in the German energy market.
Everyday
Installing solar panels is more affordable because of the feed-in tariff; you get paid for the extra electricity you produce.
Technical
The feed-in tariff (FIT) contract guarantees a fixed price per kWh for 20 years, decoupled from the wholesale market price.
Examples
By Part of Speech
verb
British English
- The scheme is designed to feed tariff-supported power into the national grid.
American English
- The program allows homeowners to feed renewable energy back to the utility.
adverb
British English
- Not applicable. The term is not used as an adverb.
American English
- Not applicable. The term is not used as an adverb.
adjective
British English
- The feed-in-tariff rate was revised downwards in the new policy.
American English
- The feed-in tariff program spurred a boom in residential solar.
Examples
By CEFR Level
- The feed-in tariff helps people with solar panels.
- Many families use the feed-in tariff to earn money from their solar energy.
- Critics argue that poorly designed feed-in tariffs can lead to excessive costs for consumers and market distortions, while proponents highlight their proven efficacy in scaling up renewable capacity.
Learning
Memory Aids
Mnemonic
FEED-IN TARIFF: Imagine your solar panels FEED electricity INto the grid, and the government pays you a TARIFF (a price) for it.
Conceptual Metaphor
GOVERNMENT POLICY AS A FINANCIAL CONTRACT (The state is a buyer guaranteeing a purchase price for a commodity).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid translating 'feed-in' literally as 'кормовой' (related to animal food).
- Do not confuse with general 'тариф' (tariff) for services; this is a specific buy-back rate.
- The concept is distinct from 'субсидия' (subsidy); it's a payment for goods (electricity) supplied.
Common Mistakes
- Incorrect: 'feed-in tariff for buying electricity' (It's for selling).
- Incorrect: 'feed-in-tariff' (Incorrect hyphenation; standard is 'feed-in tariff').
- Incorrect: using it as a verb, e.g., 'The government feed-in tariffs the energy.'
Practice
Quiz
What is the primary purpose of a feed-in tariff?
FAQ
Frequently Asked Questions
No. Net metering uses credits to offset your own consumption, while a feed-in tariff involves a direct payment for all electricity fed into the grid, often at a different rate than the retail price.
Primarily homeowners, businesses, or communities that install renewable energy systems like solar panels or wind turbines.
Extremely rarely. The term is almost exclusively used in the context of incentivising renewable or low-carbon electricity generation.
New installations are no longer eligible for the guaranteed payments. Existing contracts usually continue for their agreed duration, but no new contracts are offered.