Feed-in Tariffs
Feed in tariffs differ from State to State, in Queensland we have net feed in tariff. Some electricity suppliers will pay you more than what they are legislated to do. for information from the state government on Feed in Tariff's click here or you can Talk to Future Sustainability today to find out more.
- A Feed-in Tariff (FiT) is an additional support mechanism for PV systems that has been legislated in some states of Australia
- A FiT pays a premium for solar power generation. There are two types of FiT
- A gross FiT pays a premium on all solar power that is generated
- A net FiT pays a premium only on solar power that is exported from the grid; that is when solar power generation exceeds instantaneous household electricity consumption.
- NSW and the ACT have a gross FiT. Victoria, Queensland, and South Australia have net FiTs.
- Gross FiTs offer far greater revenue certainty. Revenue under a net FiT depends upon the amount and time of electricity consumption,
- A 1 kW system installed on a house with live-at-home parents of infants is likely to export less power (and thus receive less revenue) than a couple both working during the day, even if their annual electricity consumption is the same.
- Customers in states with net FiTs can increase their PV revenue by using less power during the day, whether through energy efficiency measures or by shifting deferrable loads (washing machines, dishwashers) to night-time use.
- A larger system is also likely to export far more power than a smaller system, acting as an incentive for customers to increase their system size.
- Gross FiTs are thus naturally more appealing, as they don’t require customers to modify behaviour. Net Feed-in Tariff Concept
- Customers may receive annual cheques from their electricity retailer instead of quarterly bills, if their account stays in credit for a year. On an annual basis, if residential customers cover half their electricity consumption with the output of a PV system, they are likely to receive cheques instead of bills.
- Electricity retailers in Victoria and NSW are not obliged to pay-out accounts that are in credit, and credits may expire after one year. Some retailers offer pay-out on accounts with credit balances; customers may need to change retailers.
- Some retailers offer premium rates above the legislated FiT, but their existing tariff may also change when they install a PV system. Customers are encouraged to shop around for the best pricing outcome.
