Understanding the intricacies of solar feed-in tariffs is vital to enjoying all of the benefits that solar panels have to offer. This article will explain what a solar feed-in tariff is and how to find a good FiT.
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What is a solar feed-in tariff?
A solar feed-in tariff is a rate paid to customers who put electricity back into the grid. Households and small businesses that generate electricity using solar panels, wind turbines or other small-scale generators, can feed back any unused electricity into the electricity grid for other customers to use. In exchange, the customer receives a small rebate on their bill for every kilowatt-hour (kWh) they export.
For example, a household with solar panels may produce 16kWh of electricity on a warm, sunny day. If the household consumes 10kWh of this electricity, the remaining 6kWh will be exported into the grid in return for a solar feed-in tariff (FiT).
Solar feed-in tariff (FiT) rebates – in conjunction with the savings from generating your own power – can dramatically lower your power bill and help you achieve a return on your investment faster. So if you have solar panels, it’s important to factor in both the standard electricity rates and the solar feed-in tariff (FiT).
What are solar feed-in tariff rates?
The majority of solar feed-in tariffs are retailer funded, offering customers a rate of somewhere between 6c/kWh and 30c/kWh. However, some customers in certain areas may be entitled to higher feed in tariffs in excess of 40c/kWh if those solar panels were installed between 2007-2011.
Solar feed-in tariffs (FiTs) vary depending on the retailer, state and distribution network. Many energy providers also offer special deals for solar customers that include a higher solar feed-in tariff, often in exchange for increased electricity rates or lower discounts. While some of these products may be worthwhile for solar customers, it’s important to remember that a higher solar feed-in tariff won’t necessarily mean a better deal.
Solar plans with feed-in tariffs
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Ausgrid network in Sydney but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Citipower network in Melbourne but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on the Energex network in Brisbane but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Here are some of the cheapest solar-specific deals from the retailers on our database. These costs are based on SA Power network in Adelaide but prices will vary depending on your circumstances. We show one product per retailer, listed in order of lowest price first. Annual price estimates assume general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Price estimates exclude solar feed-in tariff credits. These are products from referral partners†. Our database may not cover all deals in your area, and please check retailer websites for up to date information.
Do I receive a solar feed-in tariff if I’m renting?
If you are renting in a house with solar panels, then you should receive the associated solar feed-in tariff for the electricity the house exports to the grid. If you live in an apartment or townhouse however, then you’ll need to have an electricity meter separate to the rest of the complex in order to have a solar feed-in tariff applied. This is so your electricity usage and solar exports can be measured and billed accordingly.
Make sure you read the terms and conditions of your rental agreement just in case the landlord has specifically requested that tenants do not receive a solar feed-in tariff.
How do I sign up for a solar feed-in tariff?
In order to sign up to a solar feed-in tariff (FiT), you must have either solar panels or another renewable generator. It is important to note that different states have different size requirements. Usually the renewable generator must be less than 100kW, though most systems are between three and 10kW.
Once your renewable generator is installed and signed off, you then need to apply to your electricity retailer to receive a solar feed-in tariff (FiT). Retailers will generally require you to complete a solar connection form and produce the relevant paperwork that shows the installation was done by a licensed solar panel professional installer. Your meter may also need to be upgraded or reconfigured so that it can measure solar exports. Once those steps are completed, contact your electricity provider and sign up to a new electricity contract that suits your home’s new needs.
Time-varying solar feed-in tariffs
Traditional solar feed-in tariffs (FiTs) are single-rate – that is, you receive the same price for solar regardless of what time you export to the grid. However, energy companies in Victoria are now required to offer what’s called a ‘time-varying feed-in tariff’ or ‘variable rate feed-in tariff’.
Variable-rate solar customers in Victoria receive the highest solar feed-in tariff (FiT) for exporting in peak demand periods (4pm – 9pm weekdays). Customers receive the lowest solar feed-in tariff (FiT) during the off-peak times (10am – 2pm), with the shoulder period (all other times outside peak and off-peak) as a middle ground.
It’s difficult to assess whether households and small businesses are better off on a variable-rate or single-rate solar feed-in tariff (FiT) as it largely depends on individual usage habits. However, if the solar system includes a solar battery, then a time-varying feed-in tariff (FiT) could be best. Electricity generated through the day can be stored and then exported during peak times when the solar feed-in tariff (FiT) is highest.
Find a more detailed explanation in our time-varying solar feed-in tariff (FiT) guide.
How do I find a good solar energy provider?
Feed-in tariffs (FiTs) are important for solar customers who wish to maximise the return on their investment. However, a higher solar feed-in tariff (FiT) won’t necessarily translate to lower power bills. For example, an electricity retailer might offer a high solar feed-in tariff (FiT), but may also have a higher than usual usage and supply rates. This would mean that any savings from the solar feed-in tariff (FiT) are lost by paying more for electricity.
A small solar system (around 2 – 4 kW) might not be exporting enough to receive value from a high solar feed-in tariff (FiT). In that case, it might be better to focus on cheaper electricity rates. Comparatively, a large solar system (7kW and above), is more likely exporting a lot of power and will benefit from finding a higher solar feed-in tariff (FiT).
Each solar system setup is different so it’s important to shop around, keeping in mind all relevant factors including electricity usage rates, supply rates, discounts, contract periods, conditions, and of course, solar feed-in tariffs (FiTs).
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