The FIT Rate Calculator helps individuals and businesses estimate earnings from renewable electricity production. FIT stands for Feed-in Tariff, a program offered in many regions where energy producers are paid for the power they generate from renewable sources like solar panels, wind turbines, or small hydro systems.
This calculator makes it easy to find out how much revenue one can expect over a month or year based on:
- How much energy is generated (measured in kWh)
- The fixed tariff rate offered per kWh
People often use this calculator to assess project viability, predict return on investment, or track expected payments for their renewable energy systems.
Formula of FIT Rate Calculator
FIT Payment = Energy Generated × FIT Rate
Where:
- Energy Generated = total electricity produced (in kilowatt-hours, or kWh)
- FIT Rate = fixed compensation rate per kWh, set by government or energy provider
Monthly or Annual Earnings:
FIT Payment (Period) = Energy Generated (per period) × FIT Rate
If Different Tiers Apply:
FIT Payment = Σ (Energyᵢ × FIT Rateᵢ)
Apply this formula when different blocks of energy have different compensation rates.
This approach works for systems with time-of-use pricing or tiered production bonuses.
Reference Table
| Type of Energy Source | Average Monthly Production (kWh) | Common FIT Rate (USD/kWh) | Monthly Payment Estimate (USD) |
|---|---|---|---|
| Residential Solar (5kW) | 600 | 0.12 | 72 |
| Residential Wind | 800 | 0.10 | 80 |
| Small Commercial Solar (20kW) | 2400 | 0.15 | 360 |
Values are approximate and may vary by location, system efficiency, and provider.
Example of FIT Rate Calculator
Let’s calculate the FIT revenue for a household solar system:
- System Output: 700 kWh/month
- FIT Rate: $0.14 per kWh
FIT Payment = 700 × 0.14 = $98/month
If this system runs similarly throughout the year, then:
Annual FIT Revenue = 98 × 12 = $1176
If the utility offers different rates for different tiers, apply the segmented formula.
For example:
- First 500 kWh at $0.14
- Remaining 200 kWh at $0.10
FIT Payment = (500 × 0.14) + (200 × 0.10) = 70 + 20 = $90/month
Most Common FAQs
A FIT (Feed-in Tariff) rate is the payment you receive per unit of electricity your renewable energy system exports to the grid. It's typically set by the government or a utility company to encourage green energy production.
Yes, in many countries, FIT payments are consider income and must be report for tax purposes. However, tax rules may differ base on jurisdiction and whether the energy is produce for business or personal use.
FIT rates are generally fixed for the duration of a contract, often 10 to 20 years. However, new applicants may receive a different rate if policies or energy market conditions change. Always check your local regulatory body for current terms.