In a broad stroke, Renewable Energy Payments, sometimes known as a Feed-in Tariff place obligations on utility companies to buy electricity from renewable energy sources, often small, local companies, for a fixed period of time.
The underlying premise being that with fixed payments the once volatile renewable energy projects now become lendable and attractive for financing, thus stimulating growth and innovation.
Proponents of Renewable Energy Payments argue that this policy has proven to stimulate local economies, innovation and small business growth because in its truest form REP's put everyone, whether small business, individual, or farmers on an equal footing with large commercial titans of industry.
[1] Representative Jay Inslee of Washington says "We can give homeowners, farmers and communities across America investment security that they can take to the bank.
We know from experience in Germany, Spain and dozens of other countries around the world that this policy approach spurs unparalleled and affordable renewable-energy development.