A feed-in tariff (FiT) is the amount the electricity retailer pays you in exchange for surplus electricity generated through renewable means, which you will feed into the grid. Depending on your location and the retailer, the rates will differ.
For example, origin solar feed in tariff is one of the best rates you will find across Australia. In NSW, they offer a maximum solar FiT of 22 cents on a conditional basis. But, their minimum and maximum solar FiT varies according to location.
Types of FiT
The two significant types of FiT models available in the country are:
- Net Feed-in Tariff
- Gross Feed-in Tariff
In the case of the net feed-in tariff model, you get paid for the excess solar energy that goes from your house to the grid. If you use all the energy generated by solar panels in your household, the retailer will settle your usage against your standard electricity bill. Any excess energy that is fed to the grid, you get paid for the same.
The retailer would pay you for every kWh produced by your solar energy system, not considering what you consumed with a gross feed-in tariff. Please note, this type of tariff is no longer available for new connections.
Payment Types
Suppose you are planning to go the renewable energy way, it is recommended you explore plans like Origin solar feed in tariff and understand how you will receive payment for exporting surplus energy.
Payments are made based on two types:
- Single-Rate
- Time-Varying
With the single-rate type, you will receive the same rate for the excess electricity that you export, irrespective of the time and day. So, for example, if your feed-in tariff rate is 11 cents per kilowatt-hour, then that is what the retailer will pay you throughout the billing cycle.
With time-varying, you will be paid different rates depending on the day of the week and time. For example, if you feed into the electricity grid on a weekday during the peak time of 3 pm to 9 pm, you will receive a higher rate than an off-peak time of 10 pm to 7 am.
Time-varying FiT will be a good option if you have, for example, a solar battery. However, if you are not actively involved in energy management, it would be best to go with a single-rate tariff. Another important consideration is the base rate. If you pay high supply and usage charges for a high FiT, the switch may not be cost-efficient.
Minimum Feed-In Tariff
Depending on your location, there are regulatory boards that set minimum single-rate and time-varying feed-in rates. For example, as of July 2020, Victoria’s minimum single-rate FiT is 10 cents per kWh. For time-varying FiT, the rates vary from 9.1 cents to 12.5 cents per kWh.
You may apply for a feed-in tariff if any excess electricity produced from a renewable energy system not used by your household is fed into the electrical grid. Consider your energy needs, base rates, and FiT to understand what payment type suits you best. Explore the Origin solar feed in tariff plans as they offer the most competitive rates in the Australian market.
