What is the FIT-Allowance (FIT-All)? How is it to be determined?

The FIT-All is the “universal charge” component of the FIT scheme. Consumers connected to the grid are to share in the cost of the FIT scheme through a uniform charge per kwh referred to as FIT-All and applied to all billed kwh. In other words, the subsidy element of the FIT scheme, which is the excess of FITs over the “avoided” cost (the average generation cost from non-RE sources), is spread over the universe of consumers using the electricity grid.

Upon petition of the operator of the grid, the ERC will annually determine the FIT-All.

According to the DOE, the FIT-All will take into account forecasts of production from eligible RE producers, past over- and under-recoveries, administrative costs, etc., “to ensure that no stakeholder is allocated with additional risks in the implementation of the FITs” (see Sec. 2.4 of the FIT System Rules).

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