Is the Feed-In Tariff Worth It?
When considering solar panels in Australia, the feed-in tariff is an important factor to consider. Depending on the size of your solar array and where you live in Australia, a feed-in tariff could significantly reduce your energy bills. The idea behind a feed-in tariff is that customers with rooftop solar panels are compensated for any excess electricity they generate which is fed back into the grid.
The feed-in tariff is a financial incentive offered by electricity retailers to solar panel owners in Australia who export their excess solar energy back into the grid. The amount of money you could earn depends on where you live and your type of electricity retailer, with some locations offering higher incentives than others. Generally, customers can expect to receive between 6-18 cents per kilowatt hour of electricity generated.
The amount of money you can earn through a feed-in tariff depends on many factors, such as the size and location of your solar system, the type of inverter you have, the efficiency of your solar panels, and the amount of sunlight your area receives. It’s also important to consider the cost of purchasing and installing a solar system as well as any ongoing costs associated with maintenance.
Overall, the benefits of a feed-in tariff can be significant for those who are willing to invest in a quality solar system and take advantage of government incentives. For example, homeowners could save up to $2,000 per year on their power bills with a solar system and a feed-in tariff. Additionally, homeowners may be eligible for additional rebates or incentives depending on their region.
It’s important to note that the payback period of most solar systems is between seven to twenty years, but with a feed-in tariff, the payback period can be reduced significantly. However, the cost of installation and ongoing maintenance should also be taken into consideration when deciding whether to invest in a solar system with a feed-in tariff. If you have the money, feed-in tariffs often make solar panels an even better investment.
Solar Feed-In Tariff
To learn more about the feed-in tariff in your location, choose a local Solar Company to guide you through the process. In Adelaide, for example, customers generally make between 9.93c and 13.68c per kilowatt hour of electricity generated when they invest in a solar panel feed-in tariff under the South Australian Government’s Solar Feed-In Tariff Scheme (SAFIT).
Overall, feed-in tariffs are worth it if you have the money to make the initial investment in solar panels. This is because you can benefit from both energy savings that come from using your solar electricity and a financial return on your investment due to selling unused electricity back into the grid at an agreed rate.
Solar panels may also help increase the value of your home. For example, homes in Adelaide with solar panels can have an increase of around $25,000 in their property value.
Before signing up for a feed-in tariff though, make sure that you understand all the details and requirements involved. This includes researching your options and understanding potential changes to the feed-in tariff in your area. It is also important to remember that some retailers may require you to enter into a long-term contract with them, so it’s worth shopping around for the best deal.
If you have any questions, don’t hesitate to contact your local solar supplier or the relevant government department. They can help you decide if the feed-in tariff is a good option for you, and provide more information on current rates and any changes that may be in place.
