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How Do Feed-In Tariffs Work?

How Do Feed-In Tariffs Work?

Living in Australia comes with the advantage of abundant sunlight, which means more electricity from your solar panels. When your solar panels generate surplus electricity, it’s not wasted. It’s either stored in your battery (if you have one) or sent back to the main grid. The extra electricity you send back to the grid is compensated through a concept known as the feed-in tariff.

What’s great about a feed-in tariff is that it promotes renewable energy. It makes installing renewable electricity systems more cost-effective for solar system owners by reducing payback times through savings on electricity fees. Additionally, it provides users with insights into their energy usage, highlighting what contributes most to their electricity consumption. This knowledge can be instrumental in helping people cut down on their energy use.

Typically, solar panels export electricity during the sunniest parts of the day and draw from the grid at night or when sunlight is low. The electricity you export is credited to your electricity account, contributing to an overall reduction in your bills.

Feed-in tariffs for South East Queensland

If you reside in South East Queensland, it’s advisable to explore various options to ensure you secure the best deal. Due to the absence of a set rate for electricity exported to the grid, different retailers provide diverse pricing options, all featuring competitive, market-based tariff rates.

Solar feed-in tariff for regional Queensland

If you reside outside South East Queensland, you may qualify for the regional solar feed-in tariff established by the Queensland Competition Authority. To meet the eligibility criteria, your solar system must have a maximum inverter capacity of no more than 30 kilowatts, and your annual electricity consumption should be less than 100 megawatt hours (MWh). Additionally, you must be a retail customer of either Ergon Energy Retail or Origin Energy (for those connected to the Essential Energy network), be connected to the electricity grid, hold a network connection agreement with an approved electricity distributor, limit your premises to one solar power system eligible for the feed-in tariff, and not be receiving any other tariff, such as the 44 cent/kWh feed-in tariff. For more details, visit the Queensland Government website.

Solar Bonus Scheme 44c feed-in tariff

This bonus scheme is not for new customers and will be available until 1 July 2028 for those who are eligible.

  • To qualify for the 44c feed-in tariff, ensure you:
  • Consume less than 100 megawatt-hours of electricity annually.
  • Maintain an electricity account with the retailer for the premises with the solar power system.
  • Operate an existing system with an inverter size approved by your electricity distributor.
  • Have a network connection agreement in place with the distributor.
  • Stay as the electricity account holder or make appropriate changes.
  • Use like-for-like parts when replacing components.
  • Check with your distributor before adding panels, systems, or batteries.
  • Replace the inverter with one of the same or smaller size.
  • Only use alternative energy sources when the 44c feed-in tariff system is inactive, or arrange a separate connection for additional generators or batteries.

Still unsure? We’re more than happy to chat!

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Established in 2020, Tropical Solar and Electrical Services is a locally owned and operated company servicing homes and businesses throughout Mackay and surrounding areas including Moranbah, Sarina, Proserpine and Rockhampton. Whether it’s power on the roof or within the property, we’ll ensure it’s running as it should. Get in touch with our electrical experts today for a free quote. We’re available 24/7 for your convenience.

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