Solar Feed-in Tariffs: What Are They? and How Will They Affect Your Power Bill?
As the world moves towards renewable energy, more and more homeowners are turning to solar power as a way to reduce their carbon footprint and save on electricity bills. One of the key incentives offered to solar panel owners is the solar feed-in tariff, which can help offset the cost of installing and maintaining a solar system. But what exactly is a solar feed-in tariff, and how does it impact your power bills?
What is a Solar Feed-in Tariff?
A solar feed-in tariff is a program that pays homeowners for the excess electricity their solar panels generate and feed back into the grid. Essentially, when your solar system produces more electricity than you need, the excess is sent back to the grid, and your utility company pays you for that power. The rate at which you are paid for your excess power is called the feed-in tariff.
The exact rate of the feed-in tariff varies depending on the state or territory you live in, as well as the time of day and season in which the excess electricity is generated. Your choice of energy provider can also have an impact on the rate received, in some cases this can as much as half your feed-in rate so it’s important the energy provider is chosen carefully.
How Does a Solar Feed-in Tariff Impact Your Power Bill?
The impact of a solar feed-in tariff on your power bill depends on a number of factors, including the size of your solar system, system efficiency, your energy consumption habits, as well as the feed-in tariff rate from your energy provider.
If your solar system generates more electricity than you consume, and you are paid a high feed-in tariff rate for the excess power you produce, you may actually end up with a negative power bill. This means that you could be paid more for the excess electricity you generate than you pay for the electricity you consume from the grid.
However, if your solar system generates less electricity than you consume, or if the feed-in tariff rate is low, you may still need to pay for electricity from the grid. In this case, the feed-in tariff will reduce the amount you owe, but it may not eliminate your power bill entirely.
In general, the larger your solar system, the more excess electricity you will generate, and the higher your feed-in tariff rate, the greater the impact on your power bill. Additionally, if you can shift your energy consumption to times when your solar system is generating excess power, such as during the day, you can further reduce your reliance on the grid and potentially increase your feed-in tariff payments.
Can I predict my Power Bill in Advance?
Yes! during an appointment with an iDeal Solar™ Solar Star, your existing bill will be analysed, along with your usage and any lifestyle habits which may change future usage. Your Solar Star will then walk you through choosing the optimal system to offset any bills, before predicting future bills and fully underwriting future bills with our exclusive Power Bill Guarantee.
Overall, a solar feed-in tariff can be a valuable incentive for homeowners looking to invest in solar power. By offsetting the cost of a solar system and potentially even earning money from excess electricity, a feed-in tariff can make solar power more accessible and affordable for many Australians. However, the impact of a feed-in tariff on your power bill will depend on a number of factors, and it is important to carefully consider these factors before investing in a solar system.
Book an appointment with one of our Solar Stars today who will design the optimum system for you to secure feed-in tariff savings.