Solar feed-in tariffs

Feed-in Tariffs

A feed-in tariff is a premium rate the electricity supplier pays you for excess electricity that your solar power system feeds back into the grid. The energy providers are obliged to buy your solar energy for a rate above the market price (often 3 or 4 times the rate you pay for energy used from the grid).

Feed-in tariffs have been used effectively in Germany and Spain and are responsible for the huge success of solar power in over 40 countries around the world. The tariffs work to promote the adoption of more renewable energy solutions in a time when natural resources are quickly depleting and the harmful effects of global warming are being seen by all.

Frequently Asked Questions

Is every state the same?

Every state's feed-in tariff structure differs. Currently only Queensland and Tasmania have feed-in tariff schemes in place. Victoria's scheme closed end of September 2011, but a new transitional scheme will commence January 1, 2012 paying 25c per kilowatt hour for surplus electricity. The new program will be available for 5 years.

New South Wales, ACT, South Australia and Western Australia have closed their schemes to new residential connections. 

How can I maximize my tariff?

To get the maximum feed-in tariff results its best to use less electricity during the day when possible and only pull down from the grid at night when only costing you 14-16c per kW. This suits most lifestyles of those working full time. Try to switch off appliances that aren't needed or shift some tasks to very early or to later at night.

When will the feed-in tariff program finish?

The time period that the tariffs will run varies for each state, with the governments conducting reviews of their schemes. NSW, ACT, SA and WA have closed to new residential connections, with VIC introducing a transitional scheme on January 1, 2012 to run for 5 years.

Will small businesses and community groups be eligible?

Queensland allows for small businesses using less than 100MWh per year.

What if my system produces more electricity than I use?

You will be credited by your electrical provider for any surplus electricity you have sent to the grid. The Electricity Act 1996 states that if your account is in credit for any more than 12 months the electricity supplier must pay you the balance rather than keep the credit ongoing.

Feed in tariffs and all figures are correct at the time (November 2011) and are subject to changes in Government regulations.