Solar Energy Providers

Red Energy reclaims crown as best-rated solar provider

We all know solar can help you save on power, but many of us still overlook the importance of finding the right electricity provider. You deserve to be rewarded properly for your solar investment, and that means your electricity provider should go above and beyond to help you save. Unfortunately, however, only 68% of solar customers we surveyed think they’re getting a good deal on electricity, while just 57% are happy with their feed-in tariff. This could be related to the fact that 69% haven’t switched providers in the last two years.

Many of those who haven’t switched recently said it’s because they haven’t had time or the comparison process is too complicated – but it doesn’t have to be. And that’s why we’re here to help. Canstar Blue does all the hard work for you, by annually canvassing the opinions of solar customers right across Australia, asking them to rate their solar provider across key variables like customer service, bill & cost clarity, ease of sign-up, solar tariff rate, online tools & advice, environmental sustainability and value for money, to help you make a better-informed decision.

This year, more than 1,500 bill-paying solar customers took part in our survey, with seven different retailers picking up the minimum sample size of 30 to be included in the final results. So, what did we find?

Best Solar Providers

Here are the best solar energy providers in Australia, as rated by consumers in Canstar Blue’s 2020 review

1. Red Energy
2. Alinta Energy
3. Origin
4. EnergyAustralia
5. AGL
6. Lumo Energy
7. Simply Energy

Red Energy was the only electricity provider to be rated five stars for overall satisfaction by its solar customers this year. In fact, it achieved top marks across most research categories, including customer service, bill & cost clarity, ease of sign-up and focus on environmental sustainability. Alinta Energy, Origin, Energy Australia and AGL received four stars for overall satisfaction. It was three stars overall for Lumo Energy and Simply Energy.

We also received feedback on Aurora Energy (Tasmania), Synergy (Western Australia) and Ergon Energy (regional Queensland) in our survey. However, as these solar retailers operate in areas where there is little or no competition between electricity providers – and customers have no choice – they have not been included in the final results.

Read on for our updated guide to solar energy companies in Australia, their feed-in tariffs and what you can do to get a better deal, starting with the basics on the installation costs of solar and whether it’s still worth the investment. But first, here is a glance at the solar-specific deals on our database:

Solar Plans in Australia

Is solar still a good investment?

There are many factors to consider when it comes to whether or not solar is a wise financial investment – which we’ll come to – but if you’re looking for some high-level guidance, our latest survey found that:

• Households spent an average of $6,106 installing their solar systems. This is up from $5,918 last year, which could come down to a multitude of factors.
• 94% so far believe installing solar has been a good financial decision. This number has increased slightly when compared to last year

So whether you’re considering installing solar panels for the first time, or just looking to boost the value of your current home with a better deal from a retailer, here is a guide to help you along, including details of the solar feed-in tariffs available in your area.

Solar rebates and incentives

Although there are fewer government incentives for installing solar today than there were a decade ago, there are still two schemes in place that dramatically reduce the cost of installing solar and can improve your return on investment. These are feed-in tariffs and Small-scale Technology Certificates.

Small-scale Technology Certificates

Small-scale Technology Certificates (STCs) are part of a federal scheme which rewards customers with a form of rebate. When a household installs a solar system, it will receive a number of STCs. The amount awarded depends on the customer’s location, as well as their generator size. These certificates can be sold on an open market or given to your solar installer for a hefty discount on your system.

Solar Feed-in Tariffs

If your solar panels produce more electricity than you can use, the excess solar power will be fed into the energy grid for your retailer to sell to other customers. For each kilowatt-hour (kWh) of electricity that a solar system exports, your solar company credits you a small rebate called a ‘feed-in tariff’ (FiT). This is also occasionally referred to as a ‘buy-back’ rate.

Feed-in tariffs by state

There is no nationwide solar scheme in place, meaning that feed-in tariff rates vary across the country. Some states enforce mandated feed-in tariff rates, while others only provide ‘recommendations’ and some simply leave it up to the retailers to set their rates. Below is a list of mandated or recommended feed-in tariffs across Australia, but the good news is most retailers offer higher rates than the minimum required (which we’ll come to below).

Source: Respective state government websites, March 2020. Rates subject to change. 

Time-varying feed-in tariffs

Some states have begun introducing ‘time-varying feed-in tariffs’. This new FiT is similar to a time-of-use tariff in that the rate you receive for exported solar varies depending on the time of day. Customers are paid a hefty FiT rate during peak hours when everyone is using electricity, but the trade-off is that you are then paid slightly less for exported electricity throughout most of the day when demand is comparatively low.

Time-varying feed-in tariffs require a smart meter and have been compulsory in Victoria since July 2019. From this time, the minimum time-varying FiT will be 9.9-14.6c/kWh. There will also be a single range FiT of 12c/kWh, with one flat rate applying for all energy exported regardless of the time of day. Solar panel households on the Ergon Energy network in regional QLD can also expect time-varying feed-in tariffs of between 5.8c/kWh and 13.7c/kWh. NSW also has minimum time-dependent FiTs ranging from 8.8c/kWh early in the morning to as much as 16.5c/kWh in the night. However, conditions apply.

Solar Bonus Schemes

In an effort to boost solar power uptake, most state governments introduced a range of solar schemes, offering bonus feed-in tariff rates of up to 60c/kWh to customers who installed solar early on (generally before 2012). However, there have been a number of significant changes to these schemes over recent years.

At the end of 2016, the New South Wales Solar Bonus Scheme came to its natural conclusion and households in the state stopped receiving feed-in tariff rates of 20 or 60 cents per kWh. The silver lining for solar customers in NSW is that most solar energy retailers have increased their basic feed-in tariffs following recommendations from the Independent Pricing and Regulatory Tribunal (IPART).

It’s much better news for Queenslanders as their state government has committed to upholding its Solar Bonus Scheme until 2028. Meanwhile solar bonus schemes in South Australia were somewhat reduced in 2016. However, SA solar customers may still receive a 44c/kWh feed-in tariff until 2028, while some Victorian households will still receive 60c/kWh until 2024.

It’s important to understand that the Solar Bonus Scheme is now closed to new customers. This means that if you have recently installed a solar system – or you plan to soon – you will not receive a premium feed-in tariff, only the basic FiT of about 6 to 23 cents per kWh, depending on your location and retailer. However, some solar companies are now offering seemingly generous rates of their own to attract new customers.

List of Feed-in Tariffs by Retailer

Solar has become a competitive space for energy retailers, with some trying to give themselves an edge by offering higher feed-in tariff rates. Below is a list of the solar retailers in our report and the feed-in tariffs they currently offer across the major states. Keep in mind this list does not include all retailers, so be sure to shop around and keep all your options open.

Source: Respective retailer Basic Plan Information Documents, March 2020.

Hit the links below to jump to a wide comparison of feed-in tariffs in your state:

• QLD Feed-in Tariffs
• VIC Feed-in Tariffs
• NSW Feed-in Tariffs
• SA Feed-in Tariffs
• ACT Feed-in Tariffs
• TAS Feed-in Tariffs
• WA Feed-in Tariffs

You might notice that Red Energy – the winner of our 2020 ratings – doesn’t offer the biggest feed-in tariffs on the market in some areas. But it’s important to understand that a higher feed-in tariff won’t necessarily mean it’s a better deal on electricity. It could be the case that it is simply masking increased usage and supply charges. That’s why it’s important to shop around and compare energy deals to see which provider and plan is best for you, with regards to the feed-in tariff you receive, but also what you pay for the power you draw from the grid.

Net vs Gross Solar Metering

To get the most out of your solar, it’s important to know the difference between net metering and gross metering.

• Gross metering: All of the electricity your solar panels produce is exported to the energy grid.
• Net metering: Electricity produced by solar panels is used by the home and only the excess electricity is exported to the grid.

Because the price of electricity usually exceeds the buy-back rate on solar, it’s generally advised that customers remain on a net metering setup. That said, those who receive a premium feed-in tariff on a Solar Bonus Scheme will often save more with gross metering. You’ve probably heard people boast about ‘making money’ from their solar and not paying anything for energy? These are those people!

Installing Solar: What to Consider

Most Australians are by now well aware of the advantages of solar power. That said, it’s not necessarily a good investment for everyone. If you’re yet to install solar, here are a few key points to consider:

• Location: Households in sunnier areas such as the NT, QLD, WA and parts of NSW stand to benefit the most from solar panels. Most areas of VIC and SA can also be suitable for solar power, provided they receive favourable weather.
• System size: Picking the right sized solar system will depend on how you plan to use it. Consider your rates, how much electricity your property uses, and if you’re eligible for a FiT. If you’re on the fence about what system size you should choose, you might want to opt for a small (and cheaper) one – you can always upsize in the future. To give you some idea, we’ve previously found 3kW and 5kW systems to be the most popular with survey respondents.
• The cost: The hefty price tag is undoubtedly the biggest barrier to installing solar, with our 2019 survey finding customers spent an average of around $6,000. While the price of solar is generally coming down, even the most basic system will set you back a few thousand dollars.

Solar Storage Batteries

A solar storage unit is a battery capable of storing the electricity your solar panels produce, rather than having it exported to the energy network. Solar battery technology has improved considerably in recent years and new residential products such as the Tesla Powerwall, Ecoult Ultrabattery and Aquion battery have helped bring the technology to the mainstream market. You can see a detailed list of solar batteries available in Australia here.

Solar storage batteries remain fairly uncommon. That said, three in five respondents to our 2020 survey (62%) said they aspire to go 100% off the grid. To do so, you’ll need a significant storage capacity.

Solar customers that receive a small feed-in tariff stand to save the most with a solar battery. By storing electricity for later use, the customer is saving the price they would have paid for electricity. This is often a saving of 20 to 35 cents per kWh, rather than the 6 to 23 cents they might have received with a feed-in tariff. Unfortunately, solar batteries remain quite expensive in Australia, costing upwards of $8,000 to purchase and install. At present, that means a solar battery might end up costing you more than you will save, though that will depend on the size of your solar system, as well as the price you pay for electricity.

Solar Plans: What’s available?

Solar is set to reshape the Australian energy market in the coming decades, and it’s quickly becoming a key battleground for energy companies. We are seeing providers getting increasingly creative with their plans. Diamond Energy, for example, recently introduced its GridCredits100 plan, which gives eligible solar customers up to 100c/kWh for electricity at times of high network demand. Some retailers have also experimented with variable rate feed-in tariffs, where the rate you receive for your solar-generated electricity will vary depending on current wholesale prices.

While there are some solar-focused energy retailers and products in the majority of cases, signing up to a solar plan will not be too dissimilar to an ordinary electricity plan. The only difference is that you will also receive a feed-in tariff, so assuming you’re entirely self-sufficient, you’ll still need to compare plans based on the usage and supply charges. However, it appears that solar-specific products are becoming more common, with the likes of AGL, Origin and Click Energy offering higher-than-average feed-in tariffs on some plans.

Best-Rated Solar Retailers

To help you decide which solar retailer might be the best fit for your personal circumstances, here is an overview of the 10 providers in this year’s review.

Red Energy

Red Energy is a well-rounded energy retailer, offering competitive rates, moderate feed-in tariffs and a modest pay on time discount off your entire bill. This year, this combination saw it top our solar ratings table, returning to the top after a year away when it was briefly replaced by 1st Energy. Red Energy does not have any solar-specific plans, but it has attractive options that include FiTs. The retailer’s big selling point is its partnership with Qantas which bring Frequent Flyer points with some plans, while customers on its other plan have access to Red Energy Rewards – the retailer’s loyalty program that delivers money off various leisure and entertainment activities.

Alinta Energy

Alinta Energy is a rapidly-growing energy provider, operating across QLD, NSW, SA, Victoria and WA. Alinta doesn’t offer much in the way of solar and its feed-in tariffs are below average in most states, the exception being Queensland where it has a couple of solar-specific products with fairly standard feed-in tariffs. However, Alinta Energy tends to offer some of the most competitive usage rates on the market, so solar customers could still get a good overall deal. This is evidenced as it came second in our ratings this year with five stars for value for money. The retailer also has a rewards program which brings savings on multiple leisure and entertainment activities.

Origin

As one of Australia’s largest energy retailers, Origin has a wide range of electricity deals, including the ‘Solar Boost’ and ‘Solar Boost Plus’. Customers must have purchased a solar system from Origin to receive the best feed-in tariff. All dedicated products include above-average feed-in tariffs, and all standard Origin electricity plans include standard to low buy-back rates. Origin also sells and installs solar panels, batteries, inverters, home monitoring systems and practically anything else you will need to start saving on electricity with solar. Origin is moving up in the ranks, rated four stars overall this year, in comparison to just three in our last two reports.

EnergyAustralia

Unlike Origin, EnergyAustralia doesn’t offer any specific solar products, but its standard plans do still include competitive feed-in tariffs. Combined with large guaranteed discounts, solar customers could get a good deal from EnergyAustralia, but be sure to check the basic usage rates being charged. While EnergyAustralia doesn’t directly install solar itself, it does work with customers to help find and organise the right solution for their home. In our latest review, EnergyAustralia scored four stars for overall satisfaction and across most categories including value for money and customer service.

AGL

One of Australia’s largest electricity, natural gas and solar retailers, AGL offers a diverse range of energy products to suit varying needs and preferences. These include a specific deal for solar customers in the shape of ‘AGL Solar Savers’, which delivers higher than average feed-in tariffs across the states. But you may need to specifically ask for this product given that AGL does not always make it publicly available in all areas. All other AGL plans provide reduced but reasonably competitive FiTs. AGL has made strides since last year’s comparison, coming in with four stars overall as well as for its solar tariff rate.

Lumo Energy

While Lumo Energy emerged as the highest-rated solar retailer in 2017, this year it lands towards the bottom end of our ratings with just three stars overall. Despite this, Lumo, which operates in Victoria and South Australia only, offers fairly competitive feed-in tariffs on its range of energy plans. This earned it four stars in our ratings for value for money. Lumo Energy is one of two retail brands owned by renewable energy generation company, Snowy Hydro – the other being Red Energy. Like Red, Lumo Energy has a rewards program to offer additional value. Lumo Ameego brings various savings at retail stores, restaurants and cinemas.

Simply Energy

Simply Energy has a host of interesting energy offers such as products including free AFL store vouchers, movie rewards points and deals exclusive to members of certain clubs. Simply Energy offers competitive feed-in tariffs in some states, as well as a reasonable conditional discount when customers pay their bill on time. Like many retailers, Simply Energy does not offer any plans specifically marketed at solar customers, but the value-add incentives that come with its standard plans, plus reasonable feed-in tariffs, have landed it three stars in this year’s solar provider ratings.

How to get the best value from solar

A growing number of Aussies are turning to solar to escape rising power prices. Recognising this, more and more energy retailers are focusing on products designed to help solar customers save. Households with solar panels now have an unprecedented number of options available to them, meaning it’s more important than ever to frequently compare providers and products. It also means that you need to be increasingly wary of traps – while a particular plan might include a very juicy feed-in tariff, this may be compensated for with increased electricity rates or smaller discounts.

When comparing providers, be sure to look at their Energy Price Factsheets and ask plenty of questions if you’re unsure about any of the terms. Just like all energy users, solar customers shouldn’t just set and forget with one provider. Make sure you regularly compare retailers and plans so you can truly maximise your solar savings.

List of Feed-in Tariffs by State

Queensland Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

Victoria Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

New South Wales Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

South Australia Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

Australian Capital Territory Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

Tasmania Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

Western Australia Solar Feed-in Tariffs

Source: Canstar Blue electricity database/respective retailer websites, March 2020.

Further reading:

• QLD Solar Guide
• VIC Solar Guide
• NSW Solar Guide
• SA Solar Guide

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