Receiving a continous years of income by selling electricity to TNB automatically! It's kinda cool, coz now I am using green energy while making passive income that is inheritable to my children. Thank you ReFIT!
A feed-in tariff (FIT, standard offer contract advanced renewable tariff or renewable energy payments) is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology.
In addition, feed-in tariffs often include "tariff degression", a mechanism according to which the price (or tariff) ratchets down over time. This is done in order to trackand encourage technological cost reductions. The goal of feed-in tariffs is to offer cost-based compensation to renewable energy producers, providing the price certainty and long-term contracts that help finance renewable energy investments.
Under a feed-in tariff, eligible renewable electricity generators (which can include homeowners, business owners, farmers, as well as private investors) are paid a cost-based price for the renewable electricity they produce. This enables a diversity of technologies (wind, solar, biogas, etc.) to be developed, providing investors a reasonable return on their investments.
The tariffs are typically designed to ratchet downward over time to both track, and encourage, technological change.FITs typically offer a guaranteed purchase agreement for electricity generated from renewable energy sources. These agreements are generally framed within long-term (15â€“25 year) contracts.The fact that the payment levels are performance-based puts the incentive on producers to maximize the overall output and efficiency of their project. As of 2010, feed-in tariff policies have been enacted in Malaysia via a new agency name SEDA, helmed by Kementerian Tenaga, Teknologi Hijau & Air.
* extracted from Wikipedia