Feed-In Tariffs (FIT) | Earn money from your solar panels
Understanding how a Solar feed-in tariff (FIT) can save you money is crucial to maximising your solar system and getting the best deals from electricity retailers. More Australian homes than ever before have installed solar panels, however very few people know what feed-in tariff rate they have with their electricity plans.
There are a number of solar bonus schemes in place across states and territories in order to encourage the switch to renewable energy. Solar feed-in tariff schemes – sometimes known as solar buyback schemes – essentially allow those with a solar power system to sell their excess solar power.
By sending the solar energy back into the electricity grid, your electricity retailers purchase it for a minimum feed-in tariff rate. These amount can vary greatly, depending on how many kilowatt hours (kWh) you produce, whether you have time varying tariffs, your retailer and your state.
If you don’t know how many cents per kWh you’re receiving, you want to reduce your electricity bills or you were confused about anything mentioned above, this article is for you. Below we will cover all of the basics. We will explain what a feed-in tariff is, compare the rates per state and retailer, and let you know some of the important variables to consider.
What is a Feed-in Tariff?
Simply put, a tariff is a payment imposed on an import or export. In this case, it is a payment from your retailer for the electricity that your solar system exports, or ‘feeds’, into the public grid. These tariffs have been used to incentivise clean energy and encourage homeowners to become positive contributors to the electricity grid.
Solar feed-in tariffs are viewed around the world as one of the most effective means of shifting energy consumption habits. Federal and State Governments throughout many developed countries have begun to implement these tariffs. We all know that money is a powerful motivator. As it turns out, using financial incentives may work to change attitudes towards sustainability.
Do you want to reduce your carbon footprint? Limit your dependence on the grid? Or simply earn money from your home or commercial solar system? Feed-in tariffs can help you achieve those goals.
Single Rate Tariffs & Time-Varying Tariffs (VIC)
Each year in Victoria, the rates of feed-in tariffs are determined by the Essential Services Commission (ESC). The ESC judges the value of solar energy by its market, environmental and social value.
“For the financial year beginning 1 July 2019, customers on the current minimum feed-in tariff will continue to receive a single-rate minimum feed-in tariff or a time-varying feed-in tariff. Electricity retailers may offer one or both of these feed-in tariffs to customers.”
These rates remain in place in Victoria until 30 June, 2020 when the ESC will reevaluate for the following financial year.
Retailers can give owners of a solar system the choice between a single rate, or time-varying tariff. They must offer at least the minimum tariff rate.
Feed-in tariffs from 1 July 2019 to 30 June 2020 (VIC)
- The single rate minimum feed-in tariff is 12 cents/kilowatt hour. This applies regardless of the time that the energy is exported.
- The time varying minimum feed-in tariff is between 9.9 cents and 14.6 cents/kilowatt hour. The rate you receive depends on the time of day that you export the electricity.
Solar Feed-in Tariff Rates per State | The Best and Worst
We have compared the rates of solar feed-in tariffs across each of the different states and the different energy providers. We have looked at the minimum rate and maximum rates that they offer in order to help you determine the best rate and energy provider for you.
Retailers offer varying rates depending on the plan you have with them. Retailers will change their rates each year, so it’s important to use this list as a guide and not a definitive pricelist. We have excluded retailers who offer rates of 0, as many of them do. The Feed-in tariff rates in each state are shown as cents per kilowatt-hours of electricity fed back to the grid.
Feed-in Tariff per state Comparison Table:
|State||Lowest Minimum FIT Rate||Lowest Maximum FIT Rate||Highest Minimum FIT Rate||Highest Maximum FIT Rate||Only Minimum FIT Rate||Only Maximum FIT Rate|
|New South Wales||6 cents / kWh (1st Energy & Discover Energy)||6 cents / kWh (1st Energy)||15 cents / kWh (DC Power Co.)||21 cents / kWh (AGL & Origin Energy)|
|Victoria||12 cents / kWh (Various)||12 cents / kWh (Various)||15 cents / kWh (DC Power Co)||15 cents / kWh (DC Power Co & Origin Energy)|
|South Australia||6.8 cents / kWh (Momentum Energy)||6.8 cents / kWh (Momentum Energy)||15 cents / kWh (Various||23 cents / kWh (Origin Energy)|
|ACT||8 cents / kWh (Origin Energy & Amber Electric)||8 cents / kWh (Origin Energy & Amber Electric)||10 cents / kWh (Energy Locals)||16 cents / kWh (Energy Locals)|
|Queensland||5.9 cents / kWh (Kogan Energy)||5.9 cents / kWh (Kogan Energy)||16.1 cents / kWh (Energy Australia)||19 cents / kWh (Origin Energy)|
|Northern Territory||23.7 cents / kWh (Jacana Energy)||23.7 cents / kWh (Jacana Energy)|
|Western Australia||7.1 cents / kWh (Synergy & Horizon Power)||7.1 cents / kWh (Synergy & Horizon Power)|
|Tasmania||8.5 cents / kWh (1st Energy)||9.3 cents / kWh (Aurora Energy)||9.3 cents / kWh (Aurora Australia)||13.5 cents / kWh (1st Energy)|
Want to know more?
If you’d like to speak to a specialist about the best rates of feed-in tariffs available to you, give us a call on 1300 076 527 or fill out our online request form. Our friendly team can answer all of your questions on solar systems and feed-in tariffs. If you’re unsure about any of the information above, or need help deciding whether a single rate or time-varying tariff is best for you, get in touch today.