What are feed-in tariffs?
Feed-in tariffs (FIT) are a defined payment for the electricity you generate from your solar PV system that is sent back to the grid . Unfortunately currently in most States the energy retailers pay relatively low feed in tariffs ranging from 5c to 12 cents and varies based on State guidelines and also varies between electricity retailers. We recommend shopping around between retailers to determine the best available FIT rate for you.
In Australia solar system owners have benefited in the past from a range of generous "premium" feed in tariff schemes, but these offers are no longer available to new solar installations.
State based feed-in tariff schemes are defined and managed by State Governments who are responsible for energy policy and rules in each State. These State Governments define the minimum FIT electricity retailers can offer. Although increasingly when it comes to solar feed-in tariffs (FITs), this is left to the market to decide. In some States the FIT’s paid to you are mandatory and in some cases they are voluntary.
It is important to understand that these policies are State based and as an incentive mechanism they can and do vary over time. The duration, value, rules and conditions vary.
The value of the FIT is an important aspect which can influence the economic outcome of owning a solar system and what the ideal size of a system should be in your individual case. Good solar installation companies as part of their site visit should offer a detailed analysis of what they expect your particular self-consumption to export ration to be, and what your economic outcome will be.
FIT offers can vary from electricity retailer to electricity retailer and change over time, so it is important to be 100% clear what offers are available at the time you are considering solar. It is important that you get up to date advice from the solar system installer at the time you are ready to explore solar power.r.
From the industry’s perspective,fair feed-in tariffs are considered an excellent way to help consumers get a reasonable return on their purchase cost and thus help the renewable energy industry to grow and reduce costs.