How Solar Tariffs Work in Australia

How Solar Tariffs Work in Australia

by Aaron Ware

Regardless of whether the sun’s up, solar panels save you money.

During the day, you can use the free electricity you generate. Then at night, you can use the power from your local power grid at a significantly reduced cost.

How does that work?

Well, the electricity you don’t use during the day is bought by your energy supplier and fed into your local grid. And the amount they paid for it is set by their solar feed-in tariff (FIT).

What is a solar feed-in tariff?

Simply put, a solar feed-in tariff is a payment that solar owners get (from their energy supplier) when they export electricity to their local power grid. The tariff rate is based on each kWh that’s exported.

But feed-in tariffs won’t get you straight-up cash. Instead, they’re paid in the form of a reduction on your next power bill.

Example: If a solar owner has an excess of 8kWh one day – and their energy retailer offers a 12c FIT – they’ll get 96c taken off their next energy bill. Multiply that by 365 days and you’re saving hundreds.

What does that mean for owners of solar panels?

It means that they can sell all the excess electricity they don’t consume during the day. They just need to find the highest bidder.

Solar Tariffs by State

Some Aussie states have set standard or minimum FIT rates, but usually it’s up to individual energy retailers to set their feed-in tariff. Listed below are the current ranges of FITs (per kWh) of major retailers in each state.

  • Queensland feed-in tariff: (0 – 17c)
  • New South Wales feed-in tariff: (0 – 21c)
  • Victoria feed-in tariff: (12 – 15c)
  • Northern Territory feed-in tariff: (8.3 – 26c)
  • South Australia feed-in tariff: (0 – 22c)
  • Western Australia feed-in tariff: (7.1 – 7.1c)
  • Australian Capital Territory feed-in tariff: (0 – 16c)
  • Tasmania feed-in tariff: (9.35 – 14.35c)

Finding the Best Energy Provider

With such a wide range of feed-in tariff prices and other types of benefits on offer, it pays to shop around when choosing an energy provider. But what should you look for?

It’s important for a provider to have:

  • Transparent prices – That means no hidden fees or confusing rates.
  • Flexible plans – So you can choose the best FIT for your property.
  • Freedom from contracts – You don’t want to be locked in long-term.

But most of all they should have a generous feed-in tariff.

Pedleys Solar has been searching for the best energy provider in Brisbane and finally found Energy Locals. They offer impressive feed-in tariffs (up to 16c per kWh), affordable energy prices and they don’t lock you into a contract. If you’re after the best deal around, we recommend them completely.

Check out how much you can save on your Brisbane solar power with Energy Locals here.

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