Public Policy Fact Sheet:

Feed-in Tariffs (FIT)

What is a feed-in tariff?
A feed-in tariff is a policy tool, which encourages the adoption of renewable energy production. The
feed-in tariff allows you to send your excess energy back into the electrical grid, forcing utilities to buy
your excess capacity. You can sell your locally generated renewable energy to utilities at a higher
premium price than other non-renewable sources.

How they work?
General: A producer of renewable wind energy can sell electricity to the grid. The utility is obliged to
negotiate a long-term contract (up to 20 years) with a producer, which guarantees priority connection
onto the grid; and compensates for necessary upgrades.

Fair price: The Maine Utility Commission has fixed the price that the utility will pay for power at 10
cents per kilowatt-hour. The rate is set as to allow producers the ability to recoup their costs and earn
fair rates of return. This also allows for market predictability, in that the feed-in tariff provides the
forecasting of profits throughout the life of a project.

Economic benefits: Guaranteed contracts allow communities and individuals to invest in renewable
power. After negotiating with the utility, a homeowner can go to the bank and apply for a loan to install
wind turbines. Because the tariff contract provides a guaranteed income stream, the bank can be more
confident that the loan will be repaid and will be more inclined to offer lower interest rates, allowing for
more stable investment opportunities. The homeowner then installs the turbines and sells the electricity
back to the grid, earning enough to pay back the loan and eventually turn a profit.

Eligibility For Maine Feed-in tariffs: Small and Medium Turbines
After September 2009, 51% or more of the projects must be owned by state based public sector, or
non-profits, or recognized Indian tribes. The turbines must be less than 1 megawatt of generation
capacity, and must be located in and connected to the Maine Grid. Projects greater than 100 kilowatts
must have a Resolution of Support passed by municipal legislature (which includes the City or Town
Council). Tribal land or territory of a federally recognized Indian tribe in Maine must have documentation
of tribal support.














Public Policy Fact Sheet:
Feed-in Tariffs (FIT)






Public Process
Projects are eligible for feed-in tariffs benefits based on certification by the state Public Utility
Commission (PUC.
To obtain PUC certification, one must fill out a Petition for Certification, which includes:
1. Applicant and Project Description
2. Documentation of:
a. For projects greater than 100kW: Resolution of Support from the municipality,
b. Applicant control over the facility site; and
c. Financial and technical capability to complete the project
3. Demonstration that the project is likely to be in service within three years of certification

Once the application is submitted, the PUC will certify your project within 90 days. Once certified, you
must present the certification and a statement requesting specific contract terms to the local
transmission and distribution utility. Steps toward Being awarded a feed-in tariff contract

1. Check that you have undertaken all basic energy efficiency measures
2. Install the wind energy technology
3. Once installed, you need to notify your energy supplier and present them with a Feed in
Tariff eligibility certificate which your installer will have provided
4. They will check to confirm that your are eligible for the tariff
5. Once installed, you need to notify your energy supplier.























Public Policy Fact Sheet:
Feed-in Tariffs (FIT)




Case Study: Feed-in Tariff

The following table shows the Northern Power 100s annual energy output and money earned from a
feed-in tariff (rate of $.10 per kilowatt-hour) for two different wind speeds.

Energy Generated $ from FIT
Class 3 wind speed, 15 mph 260,000 kilowatt-hour $26,000
Class 2 wind speed, 12 mph 183,000 kilowatt-hour $18,300
Note: FIT=feed-in tariff; wind turbines are almost never place in class 1 sites

From the table above we can calculate how long it would take to break even on the investment, which
depends on the initial cost of the turbine ($346,000$398,500 after 30% federal tax rebate and $4000
state rebate).

Years to payback cost for FIT
Class 3 wind speed 13.3-15.3 years
Class 2 wind speed 18.9-21.8 years



For more information on Feed-in tariff contact:
Christine R. Cook
Maine Public Utilities Commission
christine.r.cook@maine.gov
Phone: 207-287-1392