How Does A Solar System Work?
Electricity is generated for consumption in your home or business as a result of sun shining on the solar panels which generates DC electricity, which is then converted to AC electricity by the solar inverter that is then available for your consumption.
If the solar system generates more electricity then you consume at any point in time, then the surplus electricity is fed back into the electricity grid. The surplus electricity which is fed into the electricity grid is metered and you will receive a credit on your electricity account. The rate per kWh that you are paid for the physical amount of electricity that is fed into the electricity grid is called a “Feed in Tariff”.
The amount of the Feed in Tariff varies depending upon what Feed in Tariff Program you are eligible for.
What Is The Feed In Tariffs Structure In Australia?
Australia unfortunately has had numerous solar feed in tariff programs and incentives on a state by state basis over the last 6 years, most are expired and no longer open to new entrants.
Here is a table of most of the Feed in Tariffs that have been available over recent years:
|State||Max Size||Rate Paid per kWh||Model||Program Commenced||Due To Finish|
|NSW||10kW||60c/20c#||Gross||1 January 2010||1 January 2017|
|QLD||5kW||44c/16c#||Net||1 July 2008||30 June 2028|
|QLD||5kW||8c#||Net||9 July 2012||30 June 2014|
|ACT||30kW||1:1#||Gross||1 November 2009||30 June 2020|
|ACT||30kW||7.5c||Net||1 July 2013||No Expiry|
|VIC||5kW||60c#||Net||1 November 2009||1 January 2024|
|VIC||5kW||25c#||Net||1 October 2011||31 December 2016|
|VIC||5kW||8c||Net||3 September 2012||No Expiry|
|SA||30kW||44c#||Net||1 July 2008||30 June 2028|
|SA||30kW||6c||Net||1 July 2014||No Expiry|
|Bandanna Energy||100kW||20c||Net||1 January 2015||3 Years from Start of Contract|
|Bandanna Energy||100kW||10c||Net||1 January 2015||No Expiry|
# Program closed to new customers
Bonus Feed In Tariff Product
Our proposed product is that Bandanna Energy will provide our customers with electricity contracts that contain bonus feed in tariffs of 20c more than the Government Regulated Feed in Tariffs below when you have purchased solar from one of our Sales Partners. This offer is subject to our Terms and Conditions and Bandanna Energy receiving approval from the Australian Energy Regulator. Please refer to the Terms and Conditions to consider whether the product is appropriate for you.
Bandanna Energy will also provide our customers that are not eligible for the 20c Bonus Feed in Tariff product, electricity contracts that contain bonus feed in tariffs of 10c more than the Government Regulated Feed in Tariffs.
The Independent Pricing and Regulatory Tribunal have issued a draft determination for NSW solar feed in tariffs for 2014/15 and recommend the retailer contribution should be 5.3c/kWh for solar energy exported back into the electricity grid.
What Is The Difference Between Net And Gross Feed In Tariffs?
Under the Net Feed in Tariff program, the customer receives the feed in tariff only for the surplus energy that is exported to the electricity Grid. However, under the Gross Feed in Tariff program, the customer receives the feed in tariff only for the entirety of the electricity that is generated by the solar system and exported to the electricity Grid.