What Is Feed-in Tariffs (FiT)?
A feed-in tariff (FiT) is a payment customers for any unused electricity that the solar power system generated and fed into the supply grid. FiTs a set rate per kilowatt hour(kW) and paid as a credit on your power bills.
How does PV solar system work?
Solar PV modules, Supply the Direct current (DC) power to the inverter.
The solar panels mounted on the rooftop will gets the solar energy from the sun and generate power (Direct current = DC), then transfer it to the inverter to convert it into alternating current(AC) for household appliances.
Your home will use this solar generated power first.
Your PV system will make sure you uses the solar generated energy first and may access additional electricity from the grid (when the solar production is less than your consumption). On the other hand, when your consumption is less than the generated power, the excess generated power feeds back (FiT) as credit under your account which will help you reduce the electricity cost at night.
You get paid for the excess energy produced by your solar system.
Feed in tariff happens when your solar generated power is greater than your consumption. If your system has frequently generated excess energy during the billing period, the credit you had might even out the usage cost (day & night) and supply cost. Similarly, Your next bill will have a “credit” amount instead of a debt.
The feed in tariff rate is currently 5.89 to 17 cents per kWh in Queensland.
See the table for the updated rates for different retailers.
What Is The Purpose Of Feed In Tariffs?
- Encourage the adoption of renewable energy
- Encourage electricity consumers to become more energy-efficient
- Promote the diversification and Eco friendly energy
- Pay back the solar PV system investment
To give you an indication of what rate you may be eligible for, here’s a list of feed-in tariffs rate in Queensland.
Price exclude GST & subject to change without notice, Last update 22.JUL.2020
|Electricity Retailer||Feed in Tariff rate||Electricity Retailer||Feed in Tariff rate|
|On by Energy Australia||Dodo Power|
|Energy Australia||ReAmped Energy|
|Red Energy||Elysian Energy|
|Energy Locals||Ergon Energy|
|Simply Energy||Future X Power|
|Powerclub||DC Power Co|
|Origin Energy||Locality Planning Energy||6.0c|