Solar Feed-In Tariff (FiT)
Solar feed-in tariff is a quite simple term to understand that it will give you cash credit of the amount of electricity your solar system would export to the grid.
However, it is quite difficult to choose which electricity provider gives a better FiT. A low FiT directly impacts solar saving, and it is a common mistake that most of the homeowners do after purchasing the solar system. You might spend lots of money on premium or deluxe solar system, but that will not give you benefit if you overlook to choose high FiT to sell the solar power.
For example, if you are exporting 3000 kWh/quarter (@ 8c/kWh FiT – which is normally offered by most providers), you will earn only $240 for that quarter.
Now you must buy during night as well (if you do not have battery storage) say you bought 1400 kWh in that quarter (@ 23.5c/kWh – a standard supply tariff) plus the daily supply charges, then you would have to pay $419 in total.
Now, subtract $240 of exported electricity from $419 you bought; your final bill will be about $179 per quarter.
Considering a FiT of 15c/kWh (say with AGL, Discover Energy or Origin), the total exported electricity would worth $450, while you bought $419 worth of electricity during night hours, therefore, you will get a credit of $31.
This can be well understood in our free (link energy assessment calculator which is COMING SOON) by simply playing around at various FiT. We will certainly provide FREE consultation on choosing best FiT for your area to significantly reduce the pay-back time on your investment.
This topic is technical and sometimes difficult to understand, but we tried keeping the information simple for your understanding.