What are feed in tariffs and how do they work?

The idea of feed in tariffs became popular when energy companies were failing to keep up with the demands of a growing population. Energy providers offered 44c kWh to solar system owners, allowing them to resell their surplus electricity back into the grid. This significantly increased the size of the solar market and kick started the solar revolution. As energy providers caught up they reduced their feed in tariffs to roughly 8c, the highest being around 11c. Fortunately, as solar systems become cheaper and more efficient, they are becoming very cost effective without having high tariffs available. Tariffs have no set price and have to be negotiated with your energy provider directly if provided in your area.
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