Feed-In-Tariff
Feed-In-Tariff
A feed-in tariff is the rate you are paid for any electricity generated by your rooftop solar system that is fed back into the grid.
Feed-in tariffs are generally available for residential systems and do not necessarily extend to commercial customers. However, in most cases, commercial customers should be able to negotiate a rate with their electricity retailer.
Almost all feed-in tariffs offered now are ‘net’ feed-in tariffs. This means that the electricity produced by your solar panels will be used in your home first, and you will only be paid for excess electricity that is exported to the grid.
Feed-in tariffs differ from state to state and from retailer to retailer. In some states the government regulates a minimum rate, and in other states it is up to you to negotiate a deal with your electricity retailer.
Questions to ask your electricity retailer
- What price will they pay you for exported electricity (in cents per kWh)?
- What is the cost of the electricity you purchase from your retailer (in cents per kWh), and will you lose your off-peak rates once you install solar?
- Will you be charged a higher daily fixed charge if you install solar?
- How will you be paid for electricity you produce? Will you receive cash or a credit on your electricity bill?
- Are there any penalty clauses (termination costs) or other administration fees?
- Will your metering need to be upgraded so you can receive the feed-in tariff, and are there any costs involved?
- How often will excess energy be calculated (e.g. instantaneously, daily or quarterly)?
