Feed-in
Tariffs
A feed-in tariff is a premium rate
the electricity supplier pays you
for any electricity that your solar
power system feeds back into the
grid. The energy providers are
obliged to buy your solar energy for
a rate above the market price (often
3 or 4 times the rate you pay for
energy used from the grid).
Feed-in tariffs have been used
effectively in Germany and Spain and
are responsible for the huge success
of solar power in over 40 countries
around the world. The tariffs work
to promote the adoption of more
renewable energy solutions in a time
when natural resources are quickly
depleting and the harmful effects of
global warming are being seen by
all.
NSW Gross Feed In Tariff announced
The NSW Government has announced new details of a proposed "Solar Bonus Scheme" which is due to come into effect January 2010. The new scheme will allow participating customers to earn a gross feed in tariff rate of 60 cents per kilowatt hour their system produces.
The proposed Solar Bonus Scheme is available to small electricity customers with solar PV systems up to 10kilowatts in size and is to operate for 7 years.
Click here to see the Premier's Media Release (10th Nov).
For further information contact one of our helpful solar representatives on 1300 BE SOLAR or see NSW Solar Bonus Scheme frequently asked questions
Frequently Asked Questions
Is every state the same?
Every state’s feed-in tariff
structure differs. ACT operates on a gross
feed-in tariff whereas Victoria,
Queensland, South Australia,
Western Australia and Tasmania
offer net feed-in tariffs. NSW is
yet to stipulate what feed-in
tariffs they will offer.
What is the difference between
NET and GROSS?
A gross feed-in tariff rewards you
each kilowatt your system produces
whereas a net feed-in tariff only
rewards you for the surplus energy
your system produces that is fed
back into the grid after personal
usage.
How can I maximize my tariff?
To get the maximum feed-in tariff
results its best to use less
electricity during the day when
possible and only pull down from the
grid at night when only costing you
14-16c per kW. This suits most
lifestyles of those working full
time. Try to switch off appliances
that aren’t needed or shift some
tasks to very early or to later at
night.
When will the feed-in tariff
program finish?
The time period that the tariffs
will run varies for each state and
at present Queensland, ACT and South
Australia have all committed to 20
years whilst Victoria has agreed to
a 15 year contract, all states will
also perform reviews during this
period. The only exception is WA
were the tariff will only be payable
until the cost of the system has
been recuperated by the system
owner.
Will small businesses and
community groups be eligible?
Some states such as South Australia
have included small businesses and
community buildings, churches and
smaller schools as long as their
consumption is below 160MWh per
annum, Queensland allows for small
businesses using less than 100MWh
per year.
Will I receive the premium
feed-in tariff for any size system?
Victoria will only pay the premium
feed-in tariff for systems up to
2kW. Anything above the 2kW will be
paid the 1:1 tariff of whatever the
electricity company rate is (usually
around 14-16c per kW). ACT will only
pay the premium feed-in tariff of
50.05c/kWh up to a 10kW capacity.
Any system over 10kW will be paid
80% of the premium rate at
40.04c/kWh up to 30kW capacity.
All other feed-in tariff
states have not specified a maximum
size for feed-in tariffs.
What if my system produces
more electricity than I use?
You will be credited by your
electrical provider for any surplus
electricity you have sent to the
grid. The Electricity Act 1996
states that if your account is in
credit for any more than 12 months
the electricity supplier must pay
you the balance rather than keep the
credit ongoing.
|
State |
Feed In Tariff Status |
Max Size |
Rate |
Gross /
Net |
|
ACT |
In operation -
Introduced March 2009. |
Under
10kW - premium rate.
Over 10kW - 80% of
premium rate. |
50.05c per kWh up to
10kW capacity.
40.04c per kWh up to
30kW capacity |
Gross |
|
QLD |
In operation -
Introduced July 2008. |
- |
44c |
Net |
|
SA |
In operation -
Introduced July 2008. |
- |
44c |
Net |
|
VIC |
Law passed - to commence
late 2009.
Currently paying 1:1
tariff. |
5kW |
60c |
Net |
|
NSW |
Law passed - to commence
January 2010. |
10kW |
60c |
Net |
|
TAS |
Government yet to
stipulate details of
tariff. |
- |
Proposed 20c |
Proposed
Net |
|
WA |
Law passed -
to commence July
2010. Currently
paying 1:1 tariff. |
- |
60c |
Net |
|
Average
cost of power is 14 -16c
pr kW, tariffs usually 3
to 4 times the rate you
pay for electricity. |
* Feed-in tariffs
and figures are correct at the time
(June 2009).
Feed-in tariffs subject to changes
in Government regulations.
