How do feed in tariffs work?



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    A feed-in tariff is a policy that promotes renewable energy with the goal of grid parity.  It operates by guaranteeing access to the grid, and by establishing electricity contracts, and by aligning the purchase prices with the operation costs of renewable energy facilities.  Electric utilities are obligated to purchase renewable energy under the tariff.  It also ensures that investors will profit from funding the development of wind energy, solar energy, and a diversity of forms of renewable energy.

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