Solar Feed-In Tariff
Installing a solar system gives you the opportunity to credit your electricity account from a solar feed-in tariff. If you’re thinking of installing solar in your home or business premises, we can ensure you understand how solar feed-in tariffs work so you can make the most of your renewable energy system.
What is a solar feed-in tariff?
If your property produces more solar power than it needs, a solar feed-in tariff allows you to feed energy back into the network grid for other customers to use. In exchange for your unused electricity, you receive a rebate on your electricity bills.
There’s currently no nationalised program for feed-in tariffs, and each Australian state has a unique arrangement based off energy prices in individual areas. For example, a solar feed-in tariff in NSW may offer a different rate than a solar power feed-in tariff in QLD.
If you’re sick of spending a significant portion of your household budget on electricity bills, the feed-in scheme makes solar power an even more cost-effective investment.
How does a solar feed-in tariff work?
By installing a solar feed-in tariff, any power produced by your solar panels that isn’t instantly used gets exported back into the shared electricity grid for other properties. You’ll receive a few cents off your next bill for every kilowatt hour (kWh) of electricity that your solar system exports to the electricity grid.
It’s important to remember that the feed-in tariff is not a cash-in-hand arrangement. Any deductions you earn will be applied to your electricity bill.
The Difference Between Solar Feed-In Tariffs and Solar Rebates
Solar feed-in tariffs and solar rebates are different types of incentives. A rebate is a one-off payment designed to subsidise the initial cost of installing a solar power system. Often provided by the government, rebates offer an immediate benefit as they can be used to cover installation costs.
On the other hand, feed-in tariffs provide ongoing deductions from your power bill. You may not notice the savings generated by your feed-in tariff right away, but it can make a big difference over time.
At Pedleys Solar, we have strategically partnered with Energy Locals, a non-profit organisation offering the lowest network fees with the highest feed-in tariff rate. Installing the feed-in tariff is a pain-free process and very fast to complete. You can sign up at Pedleys Solar Energy Locals.
Feed-in tariffs have increased in the last year as energy prices have risen. This makes solar an even more appealing option to anyone considering installing it in their home. With the average 6kw system sitting at $4,000, and $2,000 worth of savings available per year, your system could be paid for in just 2 years!
Contact Pedleys Solar for more information today.