Feed-in Tariffs for Renewable Energy Production
(FITs) are set rates that utilities pay when purchasing renewable energy produced in Kentucky. FITs will accelerate the development of large and small-scale, renewable energy projects.
Under the Clean Energy Opportunty Act (HB 239), FITs will be established by the KY Public Service Commission (PSC) to equal the cost of renewable electricity production plus a reasonable rate of return. This means renewable energy project developers would be assured in advance that Kentucky utility companies would purchase their power at these set rates.
As production costs decrease over time, FITs rates will similarly decline. Utilities may adjust charges to account for the energy cost increase and may count all eligible purchases towards their REPS goal.
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