Feed In Tariff Revenue Calculator

Work out feed in tariff revenue instantly with clear inputs, formula shown and shareable results.

About Feed In Tariff Revenue Calculator

Feed-in tariff revenue is generation times the guaranteed rate, summed over the contract term with output declining by the annual degradation rate. Because the tariff is usually fixed in nominal terms, its real value falls with inflation over a twenty-year term — an important point when comparing against market-linked contracts.

Formula

Feed-in revenue

Year n revenue = year 1 generation x (1 - degradation)^(n-1) x tariff rate; lifetime = sum over term

Worked example

With the default values below, Feed In Tariff Revenue Calculator returns Lifetime Tariff Revenue of $9,443,562.45. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Generationminimum 0 kWh: 90,000 kWh
Feed-In Tariff Rateminimum 0 per kWh: 5.5 per kWh
Contract Termaccepts 1–100 years: 20 years
Annual Output Degradationaccepts 0–5 %: 0.5 %

Results

Lifetime Tariff Revenue: $9,443,562.45
First Year Revenue: $495,000.00
Final Year Revenue: $450,032.35
Average Annual Revenue: $472,178.12

Step by step

1Values used
2Feed-in revenue
3Lifetime Tariff Revenue= 9,443,562.45
4First Year Revenue= 495,000.00
5Final Year Revenue= 450,032.35
6Average Annual Revenue= 472,178.12

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Is a fixed tariff always better than market exposure?

It removes price risk but forgoes upside and is eroded by inflation unless indexed. Compare the fixed tariff against a forward curve and an inflation assumption before choosing.

What happens after the contract expires?

The plant sells at prevailing market or export rates, usually much lower. Terminal value assumptions should be conservative, and repowering may be more attractive than continued operation.