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Payment guaranteed for a certain number of years
Normally, the tariff (or price) is guaranteed for a certain number of years. The duration can be set differently for each eligible technology. A time limit is fixed in order to reduce the overall costs of the FIT system. In addition, restricting payment to a certain number of years speeds up the innovation cycle by replacing old plant with new and more efficient plants.
Experience has shown that tariffs (or prices) should be guaranteed for a reasonably long period of time, not less than 15 years. Otherwise, investment security is hampered. As a rule of thumb, the tariff (or price) should be paid for 20 years, since this period converges with the average life-time of many renewable electricity plants and long-term loans commonly cover this time period.
Learn more about the guaranteed payment for a certain number of years in European FIT countries, as they were in 2006.
Include this feature in your proposed law
Text guaranteeing payment for a certain number of years will appear automatically in your proposed law document, once you have made your choices for eligible technologies and plants.
If you have already made these choices, take a look at the text and Table in section 8(1) and (2) to see how they look. You can insert the guaranteed period in the Table offline.