Solar feed-in tariff comparison: How they work
Solar feed-in tariffs explained
A solar feed-in tariff is a credit you receive for excess solar power that your system generates and exports back to the grid. Feed-in tariffs are typically between 9 – 15c per kilowatt-hour (kWh) but the rates vary in each state and are ultimately determined by your electricity retailer.
Your feed-in tariff is a vital component in calculating your solar savings and payback. It’s advantageous to compare rates and find the best solar feed-in tariff.
Best solar feed-in tariff rates
The table below shows feed-in tariffs for each Australian state and territory. Select your state to view the best solar feed-in rates:
|Victoria||Dodo Power & Gas||12.0c|
|NSW||Dodo Power & Gas||11.6c|
|QLD||Dodo Power & Gas||8.5c|
|WA||Horizon Power||7.1c (Varies with location)|
|TAS||ERM Business Energy||8.9c|
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Self consumption vs feed-in tariff
It is much better to self-consume your solar power rather than export it back to the grid in return for a feed-in tariff. You pay a much higher rate when you buy electricity from the grid than you receive for exporting your clean energy. Therefore, feed-in tariffs play a major role in the economics of determining the suitability of solar power for your home.
Self consumption savings
Typically, your solar power system will generate more power during the day than you use in your home. For this example, we will assume that you receive an average feed-in tariff of 11.0c while you pay your retailer 31c for every kWh you buy from the grid. The difference between the two rates is 20c; this is how much you will save if you self-consume your solar power during daylight hours.
Example using a 5kW system
If you have a 5kW system that generates on average 18kWh per day and you send all of that solar power back to the grid, you will receive $1.98 in feed-in credits. If you self-consume 8kWh of the 18kWh, you will save $1.60 (20c x 8kWh) and receive feed-in credits worth $1.11 for a total of $2.71 per day in savings.
System payback solely using feed-in tariffs
If you were only to receive credits from the feed-in tariff, it would take you right on nine years to pay back a 5kW system if we assume that it costs you $6,500.