Like many things in renewable energy, Solar Feed in Tariffs (FiTs) can be confusing. To understand the FiT, first it’s important to understand how solar works.
Off Grid Versus Grid Connect
Off grid means you’re not connected to the main Australian electrical grid (mains power). That means you are 100% reliant on your solar system for electricity. The ultimate in self-sufficiency.
Grid connect means you’re still hooked up to the grid. So you can use the energy you generate with your solar system and the mains power.
There are two main benefits of being connected to the grid.
- You can use your solar power when it’s sunny, and mains power when it’s not.
- You can sell the excess electricity created by your solar system back to your energy provider.
When you sell your excess electricity back to your energy provider, they pay for it via a Feed in Tariff (FiT).
Selling your energy via Feed-in-tariffs
Let’s say it is a beautiful day and the sun is beaming straight on your solar panels.
Your solar system is creating so much power that there’s some electricity left over.
Without a solar battery, this power is sent back into the power grid for someone else to use.
Your smart meter will calculate how much you send back through, then multiply that by the feed in tariff price.
The money you make selling excess electricity is applied as credit on your bill.
The drop in FiT rates over time
About ten years ago, the FiT rate paid was extremely high, up to 66c/kWh.
Since 2008, the price for solar systems has dropped significantly, in part due to the solar rebate.
FiTs have also dropped, and are now as low as 5c – 14c.
Some people assume that solar isn’t worth it anymore, because the feed-in tariffs are so low.
A lower FiT just incentivises you to use more of your solar energy, rather than feeding it back into the grid. Many homeowners set timers for their electrical appliances, to ensure they use most of the power they generate.
How To Get The Best Feed-In Tariff
Every energy provider has different prices, so searching through everything can get very confusing.
Instead of going through the hassle of calling all of them, get in touch with us. We’ll connect you with a dedicated local solar specialists. Our specialists are always looking for the lowest feed-in tariffs and will help you find the best one for you.
If you want to get an accurate quote on how much solar will save you; say g’day.