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Energy term of the day: feed-in tariff

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Feed-in tariffs are the amounts paid by governments to businesses, households and other organisations to generate renewable electricity. Often, this is through the use of wind turbines or solar photovoltaic (PV) panels.

The tariff awarded to cover the amount of electricity generated for domestic use means that any surplus electricity can be sold and exported back to the grid.

Investopedia definition.

Wikipedia page.

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