Feed in tariffs explained

While the Federal government provides solar incentives via the solar credits scheme, there is no national buy-back scheme for energy generated from solar power system. Some State governments have designed feed-in tariffs (FiTs) to encourage homeowners like you to invest in solar power, and the schemes vary from state to state.

Essentially a feed in tariff is an incentive so that once your solar power system starts producing energy, your energy retailer pays you a premium price for some or all of the energy produced. In Australia there are two types of feed-in tariff systems, and they depend on where you live:

• Gross feed-in tariff – pays you for 100% of your solar power generated by your system. You are then billed at the normal rate for your energy use. This tariff was available in the ACT and NSW, but both schemes have now closed.
• Net feed-in tariff – pays you only for the surplus power you produce over and above the electricity you use in your home. This tariff is available in QLD, SA, VIC, TAS and up until recently in WA.

Where the feed-in tariffs are higher than the price you pay for electricity from your electricity retailer, many of our customers are now finding their solar investment making a positive net return*. ie. you get a cheque from your electricity retailer instead of owing them money! These feed-in tariffs are now a part of making sure solar energy, and a move to more sustainable living, is a financial possibility for more Australians. Not only will you reduce your energy bills but you may even generate some income from your solar investment.

This table lists the current situation with feed in tariffs in each state.

These rate are known to change any time, with governments announcing changes without notice. To the best of our ability we keep this table updated and correct, but we can not guarantee its accuracy. Sorry!

*Rates of return depend on a number of factors including how much sun you get in the area you live, the feed-in tariffs available in your state and your own household energy consumption. Also check with your electricity retailer, some provide an extra incentive above the government specified feed in tariff. In many cases there are special terms and conditions attached, and higher power purchase prices, so please check the whole contract before signing anything.