As we roll into the new year, you might be considering how you can make your home more environmentally friendly and cut down on your consumption of non-renewable energy sources at the same time. You’ll be happy to know that the State Governments in Australia have already put in place incentives to encourage businesses and homeowners to play their part. As solar energy is a freely available and easy to harness form of power, these Governments have created varying Feed-In Tariffs (FITs) to encourage its adoption. Here’s what FITs involve and how you can benefit from it!
What are feed-in tariffs?
FITs are a scheme that pays people for generating renewable energy for personal use – or, more accurately, the excess energy they DON’T use. The point of the Scheme is to increase the number of properties using solar power and increase the amount of renewable energy generated overall that can be fed back into the grid for public usage.
Most renewable energy comes from using solar panels, as it’s easy and affordable to install panels onto any roof which faces the sun rays. As opposed to installing a solar battery, it is more economical and financially lucrative to feed any excess energy back into the main electricity grid. This energy is then credited back to you on your next electricity bill at a rate which varies by State.
The current rates are (indicative only):
State Current Rate Paid*
VIC 9.9 to 29c/kWh (depending on retailer)
SA 11 to 16.3c/kWh (depending on retailer)
ACT 6 to 12c/kWh (depending on retailer)
NT Same as consumption rate / grid purchase rate
WA Varies*** e.g. 7.1c/kWh (Synergy)
QLD 6 to 12c/kWh (depending on retailer)
NSW 11.9 to 15.0 c/kWh (depending on retailer)
The amount of energy you are credited for on your electricity bill will be dependent on how much of the energy you produce you end up using yourself. Obviously, using it yourself it still the cheaper option, but if you are out of the house most of the day for example, the feed-in tariff is a great way to still see some return on your investment in the solar panels on your roof.
How do feed-in tariffs help me save money?
In short, they’re part of the equation that makes installing solar for your home or business so lucrative.
- If you generate renewable energy for personal use, you’ll save money on electricity.
- If you produce more than you use, the energy that you generate is exported into the grid for others to use and you receive a credit on your already significantly reduced energy bill.
- Your electricity bills now cost just about nothing (if you’ve purchased the right system from the right provider that is).
Who can benefit from feed-in tariffs?
Anybody and everybody! Any business or homeowner can benefit from the feed-in tariff in their State, and we encourage you all to install solar panels in your residential and commercial properties. Whether it is a house, a school, a shopping centre or a factory, any structure can generate renewable energy using solar panels and enjoy the benefits.
What do I need to know about getting started with solar panels and benefiting from feed-in tariffs?
If you’re interested in installing solar panels, simply contact a reputable solar panel installation company. As the initial cost can be quite high (though you see a positive return on investment quite quickly), it can be a good idea to seek out one that gives you the option to pay it off in monthly installments. A well designed and property installed solar energy system will pay itself off between three and five years. After that, you’ll be generating electricity for your home or business for free! Any of our team members here at GEM Energy can answer all your questions related to feed-in-tariffs and solar panel installation, so if you’re in the market (or considering getting into it), give us a call today on 1300 969 471 or visit our get a quote page.
We’ll be happy to help!