The CSIR Energy Centre therefore developed a Net Feed-in Tariff (NETFIT) concept in which electricity distributors are made financially indifferent to embedded PV, and in which the business case for the PV owner is de-risked at the same time. The concept differs from the also widely known “net metering” approach in the sense that it stimulates embedded PV as part of the overall power generation fleet, regardless of what the specific load at the customer’s site is, and it compensates municipalities financially for the portion of the fixed grid cost of electricity distributors that they cannot recover from electricity sales anymore due to self-consumed PV electricity.

A “Net Feed-in Tariff” proposal