Why Feed in Tariffs?

FITs  have the potential  to create economic incentives that produce  significant inroads in job creation, cost reduction in renewable energy production, and the development of a thriving renewable technology market for export.  The cost of greenhouse gas emission is being increasingly factored into commodities in world markets.   New Zealand is now in the unique position to become a world leader in renewable technologies, whereby financial incentives for investment in renewable energies in small scale energy generation will drive research and development, in turn having the potential to create New Zealand jobs.  It is estimated that the global market for renewable energy technology will be worth of $590–$800 billion annually by 2015,  and that 2.3 million jobs world wide have been created through renewable technologies.  The implementation of FITs  would provide the impetus for New Zealand to develop niche market in high value technological goods for export to markets around the world.  To capture only 1% of the global market in renewables  would mean between 47,000 to 65,000 new cleantech high value jobs, and the creation of a $6 -8 billion export industry in New Zealand.    
The Feed in Tariff scheme must be designed so that the market share of renewable experiences a rapid increase in market size and production, so that the accompanying reduction in cost of renewable technologies is able to reach parity with, and eventually out-price, household electricity prices, as well as the prices involved with the production of fossil fuels. The quicker the uptake, the faster the decrease in cost of production, and the more wide spread the use of renewables will become.