The feed-In tariff (FIT) system is a crucial policy tool for advancing solar energy development in Taiwan, but recent debates have surfaced over its future. (Photo: Pixabay)
Taiwan’s feed-In tariff (FIT) system, a cornerstone policy for promoting renewable energy development, is facing growing debate. The Ministry of Economic Affairs recently announced its draft FIT rates for 2025, maintaining stable reductions for solar energy except for small rooftop installations. While the FIT system has been instrumental in advancing solar energy since its implementation in 2010, mounting criticism has raised questions about its future.
The role of FIT and emerging concerns
The FIT system guarantees a 20-year purchase agreement for renewable energy, providing developers with stable revenues and enabling financing from banks. However, as solar technology becomes more cost-efficient, the necessity of prolonged government-backed support is being questioned.
Critics argue that the FIT model has become a breeding ground for malpractice, with so-called "green energy profiteers" exploiting subsidies. In addition, Taiwan Power Company’s (Taipower) financial strain from purchasing high-cost green energy has fueled discussions about phasing out the system.
