Feed in tariff schemes have been introduced by the Australian Government as an ongoing reward for people who invest in a solar power system. Feed in tariffs work by paying homeowners for the excess electricity they are feeding back into the electricity grid. This feed in tariff means that you are paid for the excess electricity you don’t use from your solar system and ‘export’ back to the electricity grid. There are 2 types of solar feed in tariff available.
You get paid for the excess electricity generated by your solar power system that is not consumed in your household. (see image to the right for reference of how a net feed in tariff works)
You are paid for all of the electricity generated by your solar power system. You then buy electricity back from the electricity grid.
The rate of your available feed in tariff varies depending on your location and energy supplier. The following table describes the current feed in tariff that could be available to you.
|QLD||6 - 10c/kWh||Varies depending on your retailer|
|NSW||Up to 8c/kWh||Varies depending on your retailer|
|VIC||Min of 8c/kWh||Reviewed annually|
|SA||Min of 6c/kWh||Effective July 1st 2014|
|WA||8.4c/kWh or 10 to 50c/kWh||Varies depending on your location and retailer|
While the amazing feed in tariff rates of the past few years are no longer available, the effect of falling feed in tariff rates has been offset by the incredible reductions in solar technology prices over the same period! High quality solar systems are almost a third of the price they were 3 years ago - making solar a great investment with an attractive return on investment.
Unless you are lucky enough to live in the Northern Territory (where they have a 1 for 1 feed in tariff) or certain areas in Western Australia, the feed in tariff rate is lower than the rate you purchase electricity at. For this reason - we recommend that you try and use as much of your electricity needs as possible during daylight hours when your solar system is producing electricity. This will ensure that you maximise the value from your solar power system.
In addition to the solar feed in tariff, you will also receive the Australian Government solar rebate. This upfront solar rebate can save you up to 50% on the cost of installing a solar power system! Read more about the solar rebate here.
Hats off to you guys for your useful website & great service! The conversations I have had with the Your Solar Quotes team have been very helpful and much appreciated. I have had my panels installed now, and I am really glad to have been referred to this site.
Jarryd, Tweed Heads, NSW - 10 Apr 2014