A feed-in-tariff is the rate you are paid for electricity generated by your solar PV system that you export back to the grid. The electricity produced by your solar panels is used in your home first, and then any extra electricity is exported to the grid.
The feed-in tariffs offered differ from state to state, and from retailer to retailer. In some states the government regulates a minimum rate, and in other states it is up to you to negotiate a deal with your electricity retailer. It is worth shopping around to find out which electricity retailers offer better rates for solar customers.
Feed-in tariffs are usually only available for solar systems up to a maximum size. This maximum varies from 5 kW to 100 kW depending on where you live and your electricity retailer. Contact your electricity retailer or the relevant state government department for details.
A CEC-accredited designer will be able to calculate your potential savings as part of their load analysis. Many factors, including the size of your system, how much electricity you export and the feed in tariff amount, will impact on how much money you save. Your system designer should consider all the relevant factors when providing you with an estimate. The actual savings you make may also vary depending on the electricity retailer you are with.
You can also contact the relevant state government departments for more details on feed-in tariffs in your state.
• ACT: Environment, Planning and Sustainable Development Directorate, 13 22 81
• NSW: Division of Resources and Energy, 1300 736 122
• NT: Department of the Chief Minister, (08) 8999 5511
• QLD: Department of Energy and Water Supply, 13 43 87
• SA: Department of State Development, (08) 8226 5500
• TAS: Department of State Growth, 1300 135 513
• VIC: Department of Environment, Land, Water and Planning, 136 186
• WA: Public Utilities Office, (08) 6551 1000
NOT ALL ELECTRICITY RETAILERS OFFER SOLARFRIENDLY POLICIES, SO IT IS BEST TO CHECK AND COMPARE THE FOLLOWING ITEMS BEFORE ENTERING INTO AN ELECTRICITY TRADING AGREEMENT.
QUESTIONS TO ASK YOUR ELECTRICITY RETAILER:
- What price will they pay you for your electricity, in cents per kilowatt-hour (kWh)?
- What is the cost of the electricity you purchase from them (in cents per kWh) and will you lose your off-peak rates once you install solar?
- Will you be charged a higher daily fixed charge component if you connect solar?
- Are there any penalty clauses (termination costs) or other administration fees?
- What will be the form of payment for electricity you produce? For example, will you receive cash or a credit on your electricity bill?
- What are the billing/payment periods?
AFTER YOUR SYSTEM HAS BEEN INSTALLED, MAKE SURE YOUR ELECTRICITY BILL REFLECTS THE CORRECT TARIFF.