Australian electricity prices are likely to increase soon. In several regions of Australia, the hikes may be severe leading to […]
In New South Wales, solar feed-in tariffs have become the talk of the town, with residents’ growing inclination towards solar-generated electricity. These feed-in tariffs have also pushed residents to adopt solar energy, thus supporting the region’s environment and economy.
Our guide on Solar Feed-in Tariff will provide essential information on:
- Finding the right solar feed-in tariff.
- Understanding the feed-in tariff.
- Learning its related factors.
- Making an informed decision.
E-Green Electrical is your local solar installer. With our revolutionary Zero Upfront Payment plan via Zip Money, going solar has never been easier or more affordable. Get a FREE quote or Call Now for a customized solar solution.
TAKE ADVANTAGE OF GOVERNMENT SOLAR REBATES AND REDUCE YOUR HOME ENERGY CONSUMPTION!
Solar Power Made Affordable: Government Rebates, Zero Upfront Fees. Embrace a brighter future with solar power.
6.6kW Solar PV System SUPPLY & INSTALLATION
From
$4,899*
Importance of feed-in tariffs for solar panel owners
What is a Solar Feed-in Tariff?
A solar feed-in tariff is a financial incentive a solar panel owner receives from the excess energy his or her solar system exports to the electricity grid. In simple terms, this means a household is paid for unused solar energy from its solar system energy production.
FiT (Solar Feed-in tariff) primarily targets excess energy produced and sent back to the electricity grid. The solar inverter tracks the amount of electricity sent to the grid and sends back the recording to your retailer.
Your retailer will then monitor your solar exports and pay based on the feed-in tariff rate.
Focusing on two types of solar feed-in tariffs, the flat rate and the time-varying feed-in tariffs, the most commonly used is the flat rate feed-in tariff. A solar panel owner receives a fixed payment per kilowatt-hour (kWh) of electricity exported, which is not influenced by the day or week when a flat rate is used.
The solar panel owners on time-varying tariffs will receive payment depending on the rate of kWh exports at different times of the day.
Why Feed-in Tariffs Matter
Feed-in tariffs play an essential role in allowing residents in New South Wales to reap various benefits. It really matters for solar panel owners to consider feed-in tariffs as they get multiple benefits:
Financial benefits
The first expectation that a homeowner will have is reduced electricity bills.
Yes, you got it right with the expectation.
As long as your solar panel generates solar power for you and exports the excess to the grid, you will offset a good portion of the electricity costs, resulting in significant savings.
As a user, you become more energy efficient as the feed-in tariffs instills the sense of change. This change seeks to ensure users are aware of the energy usage, making them change their behavior to minimize consumption. With this practice, electricity bills are cut.
The compensation for the excess solar energy generated is usually sold back through feed-in tariffs. A solar panel owner in Australia is set to get additional income from this process.
Finally, feed-in tariffs matter as they allow solar panel owners to reap long-term stable income and also gain increased value on their property, which will guarantee higher selling prices.
Impact on overall solar savings
Feed-in tariffs automatically encourage home users to adopt the use of solar panels in their homes by just offering incentives to users who have already adopted this. With massive adoption then a drop in overall costs of solar panels and installation is guaranteed.
Role in promoting renewable energy
The growth of the renewable energy industries is also much contributed by the feed-in tariffs. FiTs help diversify the energy landscape and reduce reliance on centralized power sources, which enhance the energy security and contribute to reduction of gas emissions.
Current State of Solar Feed-in Tariffs in NSW
NSW energy market provides solar system owners with an optional feed-in tariff system as the government has no minimum rate set. This is aimed to attract more customers by offering competitive offers. However, there is has been a decline in feed-tariffs over time.
Feed-in Tariffs rates in NSW have also been affected as the current rates have considerably dropped as compared to the earlier years of adoption. This is because solar panel have now become affordable.
The premium rates that were offered are now not available, and this decline also implies that there is reduced electricity prices. Electricity retailers determine the specific feed-in tariff offered to users with the range being $0.00/kWh to $0.22/kWh.
Government policies and incentives also affect feed-in tariffs. With the aim of promoting the renewable energy adoption, the Renewable Energy Target (RET), ensures that liable entities meet the yearly targets of renewable electricity very year. In addition, the Carbon Pollution Reduction Scheme (CPRS), necessitates for reduction of the greenhouse gas emission. All these policies create a growing environment for solar energy adoption which indirectly affects the feed-in tariffs.
List of Best Solar Feed-in Tariffs in NSW
In New South Wales, different retailers offer different feed-in tariffs to solar panel users. These tariffs vary from one retailer to another and depend on various side factors too.
However, it is not necessary that a high feed-in tariff will ensure lower power bills. There are so many plans where the feed-in tariff is relatively low, but the retailer offers an overall preferable deal due to low daily charges and consumption costs.
Here, we will present you with some of the best solar feed-in tariffs that you can avail of in New South Wales as a solar consumer. The guide will help you choose the best retailers offering the best feed-in tariff deals.
1. GloBird Energy
GloBird Energy offers a minimum solar feed-in tariff of 1 cent per kWh and a maximum of 17 cents per KWH. These are offered for the initial 8 kWh of energy per day, and then a FIT of 3 cents is offered after that.
2. PowerShop
PowerShop adequately rewards you for your solar energy generation. It provides a minimum solar feed-in tariff of 0.0 cents per kWh, and the maximum goes up to 13 cents per kWh, with the condition that the system size is a maximum of 10kW.
3. Red Energy
Red Energy offers you a minimum feed-in tariff of 6 cents per kWh, while the maximum feed-in tariff goes up to 12 cents per kWh. This feed-in tariff is capped at the first 5 kWh per day.
4. OVO Energy
OVO Energy offers solar feed-in tariffs in New South Wales with a minimum FIT of 0 cents per kWh that goes up to a maximum of 12 cents per kWh of energy.
5. Simply Energy
Simple energy comes with adequate feed-in tariff packages for solar consumers. The solar feed-in tariff provided by Simply Energy ranges from a minimum of 8 cents per kWh to a maximum of 12 cents.
6. Origin Energy
Origin Energy offers solar feed-in tariffs ranging from at least 2 cents per kWh to up to 12 cents. The tariff is offered only if you buy solar through Origin.
7. AGL
AGL offers solar feed-in tariff of minimum 5 cents and maximum 12 cents per kWh. These solar feed-in tariffs are valid for a system size of a maximum of 10 kW.
8. ActewAGL
ActewAGL offers decent feed-in tariffs to customers using solar energy in New South Wales. The tariff rates range from a minimum of 8 cents to a maximum of 12 cents per kWh.
9. Energy Locals
Energy Locals has quite nominal rates for solar feed-in tariffs. In New South Wales, these rates revolve around 11 cents per kWh of energy fed.
10. Energy Australia
Energy Australia has a minimum feed-in tariff rate of 7.6 cents per kWh and a maximum of 10 cents per kWh. The FIT rates are valid for a system size of a maximum of 10kW.
11. Sumo
Sumo offers you a minimum feed-in tariff at the rate of 5.5 cents per kWh and a maximum FIT rate of 8 cents per kWh in New South Wales.
12. Momentum Energy
Momentum Energy offers you a minimum solar feed-in tariff of 0 cents per kWh and a maximum rate of 7 cents per kWh of solar power fed.
13. Alinta Energy
The feed-in tariff rate of Alinta Energy revolves around 6.7 cents per kWh. Alinta Energy applies a condition that the inverter size is at a maximum of 5kW.
14. Dodo
Dodo offers solar feed-in tariff rates of 6.2 cents per kWh to solar customers in New South Wales.
Factors Influencing Solar Feed-in Tariffs
Solar feed-in tariffs are influenced by several factors, which include:
Supply and demand dynamics
When there increased demand of solar energy exceeding the supply of the panels, the retailers will offer higher rates to incentivize solar sales. However there are times when demand is low and hence more supply in the market. This automatically leads to lower rates.
Energy retailer policies
Since different retailers have their own pricing strategies and policies, the Feed-in Tariff rates offered to customers are also impacted.
Government regulations and market competition
Regulation such as the RET and CPRS that we have also talked about affect the feed-in tariffs, in terms of the market and pricing rates. There will be better market competition when these policies favor solar energy allowing significant drop in prizes from retailers.
Differences between urban and rural feed-in tariffs.
In urban basements the rates are higher due to high demand, however, in the rural basements the rates are low as the demand is also low, with fewer retailers in the areas.
How to Choose the Best Feed-in Tariff
Key considerations
Selecting the best feed-in tariff will require one to consider factors such the rates, contract terms, customer services and additional fees. The tariff rates provider by the retailer will maximize your benefits if they are good rates.
In addition, time-varying feed-in tariffs will be most beneficial if higher payments are offered during peak demand periods.
Ensure you also get to understand the contract terms, which will provide you with the duration, rate charges, and additional charges that may be involved in the feed-in tariff.
Comparison with other energy costs
You will be required to identify your energy consumption rates, the size of solar panel system and your expected return on investment. Compare expected savings from a feed-in tariff with the current costs then make a better decision on which tariff will be preferable for you.
Tools and resources to compare feed-in tariffs.
For better comparison, aside from your energy consumption rates, consider online resources and other resources in making informed decisions. Government websites, energy comparison websites and associations related to solar energy provide rich information on feed-in tariffs, regulations and incentives in NSW.
Solar Feed-In Tariff in New South Wales
Currently solar feed-in tariffs in New South Wales are provided as voluntary retailer contributions. This refers to the payments made by retailers for the energy you export from your solar panel system.
In June 2022, the Independent Pricing And Regulatory Tribunal (IPART) recommended an “all-day” feed-in tariff benchmark rate guidance for 2022/23; being 6.2 to 10.4 c/kWh.
In late April 2023, IPART published guidance for 2023-24 – 7.7 to 9.4 c/kWh.
These are simply benchmark ranges, but many retailers may provide rates that are much higher. As an alternative, time-dependant feed-in tariffs can also be paid by the retailers as per the following benchmarks:
Factors to Consider Other Than Solar Feed-in Tariff
Over the years, the rates of solar feed-in tariffs have declined to a large extent. Hence, relying totally on solar feed-in tariff while availing a solar panel system is not a wise choice. Rather, you should consider a few side factors too to ensure an optimal selection of the retailer.
While choosing a solar retailer, opt for the one that offers better customer service and support when needed. A company with an outsourced support team may not be that effective. Similarly, opt for the one that offers economical rates for solar panel systems and installation services.
Lastly, a more environmentally conscious retailer would be a preferable choice. Meanwhile, increasing electricity prices should also be a matter of concern to you, encouraging you to invest in a solar panel system that can provide financial freedom amid sky high electricity rates .
Minimum Feed-In Tariff Rates in New South Wales
Currently, no minimum feed-in tariff rates are set for solar users in New South Wales. Instead, retailers set these rates depending on feasibility and market trends. The solar power market is highly competitive, so the users get adequate rates as a tariff for feeding power back to the grid.
Although there are no minimum mandatory rates, Energy NSW has set the benchmark rate of 4.6 to 5.5 cents per kWh for the year 2022/23 in New South Wales (NSW).
E-Green Electrical is your local solar installer. Don’t let traditional financing hold you back. GO SOLAR now and join the renewable energy revolution with no money down! Get a FREE quote or Call Now for a customized solar solution.
Solar Feed-in Tariff History in New South Wales
The rates of solar feed-in tariffs were much higher initially to give a boost to the emerging solar industry. Back in 2010, solar consumers were offered feed-in tariffs at the rate of 60 cents per kWh under NSW Solar Bonus Scheme for 7 years.
During those times, solar panels were very costly, so the initiative was taken to encourage public inclination towards the solar market.
The FIT rate was significantly reduced to 20 cents per kWh in October 2010. Later in April 2011, the premium feed-in tariff scheme was closed by the NSW Government.
Since then, the feed-in tariff rates have been set by retailers considering the market trends and economic conditions.
As the tariff rates have been significantly reduced, users are opting for systems that can make them self-sufficient for whole day power requirements instead of ones that can feed additional energy to the grid for feed-in tariff.
Conclusion
The Solar Industry witnessed a significant boost thanks to the high rates of feed-in tariff in the past years. However, these tariff rates are much lower today and are set by the retailers as per market trends and economic conditions.
Here, we have explored some of the best solar feed-in tariffs that you can avail of in New South Wales as a solar customer. With precise comparisons of various retailers, you can opt for the right retailer offering the best feed-in tariff rates for every kW of power that you feed into the national grid.
