Take a deep dive into how solar feed-in tariffs can benefit you
Once you have a residential home solar system installed, you need to understand what a solar feed-in tariff is and how it works. We have created a quick guide that breaks down what a Solar Feed-in Tariff is and how they work. In addition, we will also briefly discuss how soon you can pay off your solar panels.
What is a solar feed-in tariff?
Firstly, a solar feed-in tariff (FiT) is a credit applied to your bill for the unused electricity produced from your home's solar panels. This is exported into the grid. You would then receive a small rebate per kilowatt-hour (kWh) which varies by state and retailer.
For example, a household with home solar panels may produce 15kWh of electricity on a hot, sunny day. If the household consumes 5kWh of the total electricity generated, then the remaining 10kWh will be exported into the grid in return for a FiT. If the solar feed-in tariff is $0.15 c/kWh, then the customer would receive 10kWh x $0.15 cents = $1.50 for the 10Kwh exported.
Am I eligible to get a solar feed-in tariff?
There is a list of eligibility criteria to receive a plan with a solar FiT. They are correct as of July 2022 and are subject to change:
- A solar system that is 10kWh or less and net metered
- If you have Government solar fit in our operable networks (excluding Victoria)
- Basic or smart metered solar sites
What can you earn from home solar?
There are two factors that will determine how much you can earn from having solar on your rooftop. The first is how much electricity is generated by your solar panels, minus how much you consume daily. When you consume less and generate more, you will have excess power which is usually exported back to the grid. The second is how much you are getting paid for your solar feed-in tariff and what electricity rates you are paying.
To view our current feed-in tariffs available for our plans, you can click here.
How long does it take a solar PV system to pay itself off?
A home solar system is a long-term commitment that outlays the benefits of renewable energy over time. A commonly asked question from homeowners that surrounds purchasing solar is “when will my solar system pay itself off?” This depends on a variety of factors such as:
- How much sunlight your solar PV system receives will determine how much electricity is generated
- How many panels your home has, and what the quality and cost of your solar PV system is
- How are you financing the system? Are you paying for the system in instalments with interest? Nectr offers 0% interest-free monthly installments to qualified customers. Request a call back today to find out your eligibility.
- The solar FiT rates that currently apply to you
- The position and orientation of your panels, as well as how much power you consume
Solar made simple with Nectr
Nectr's Home Solar consultants can help you with everything you need to know about solar. You can request a call back today for a personalised solar quote.