Some state governments and electricity providers still offer preferential feed in tariffs, to provide a further financial incentive to switch to solar power.
The most common system offered today is called a net feed in tariff. With a net feed in system you use the electricity you generate and any excess is sold back to your electricity provider. Electricity can still be purchased at night, when you are not generating it. The saving is represented as a credit on your electricity bill.
The rate you get for the energy you generate but you don’t use, i.e. sent back to the grid versus self consumption, will depend on:
- the state you live in,
- the date when your solar system was installed,
- your metering arrangements and
- your retailer arrangements.
The FiT rate you get may be funded by your state government, your energy retailer, or a mix of both.
State and Territory governments across Australia adopted different approaches to Solar Feed-In Tariffs, sometimes calling them a ‘Solar Bonus Scheme’ or ‘Solar buy-back scheme’. But now although the situation is changing for some it still makes good sense to own a PV system or to install a new one. Read on to find out why!