A feed-in-tariff(FIT) refers to the rate that households receive for electricity that is fed back to the electricity grid from any renewable electricity generation source. The source may be a solar panel, wind turbine or any other renewable energy generation system.
The Australian state and territory governments have different schemes with regard to the solar feed-in tariff. Also referred to as solar buy-back scheme or solar bonus scheme, feed-in-tariff offers a great way for homeowners to control their energy bills. If you reside in Victoria, the following guide will help you get a better understanding of the feed-in-tariff.
The minimum feed-in-tariff in Victoria is the amount that your energy company will pay you for the power exported to the grid. Solar system owners have the choice of opting from any of the two following options:
Single rate tariff
In either case, retailers have to offer homeowners the minimum tariff.
Single rate Tariff:
This feed-in tariff is applicable irrespective of the time of the day or week. The 2019-20 minimum feed-in tariff under the single rate from 1st July 2019 will be 12.0 cents per kilowatt hour.
Under this option, customers will receive an amount between 9.9 cents and 14.6 cents per kilowatt hour of electricity based on the time of the day. This 2019-20 minimum feed-in tariff under the varying rate will be applicable from 1st July 2019.
The time-varying tariff is outlined below:
|Period||Weekday||Weekend||Rate: cents per kilowatt hour (c/kWh)|
|Off-peak||10pm to 7am||10pm to 7am||9.9 c/kWh|
|Shoulder||7am to 3pm, 9pm to 10pm||7am to 10pm||11.6 c/kWh|
|Peak||3pm to 9pm||n/a||14.6 c/kWh|
Retailers have the flexibility to offer either one or both forms of the tariff mentioned above. This facilitates the transition occurring in the market while enabling retailers to offer other feed-in tariffs based on customer demand.
Feed-in Tariff Plans:
Your energy bill provides information about the feed-in tariff being offered to you by your retailer. There are different plans and it is important to ensure that you choose a plan that best works for you.
Best Solar Feed-in Tariff for Victoria:
Do you want to know the retailer that offers the best solar feed-in tariff?
In Victoria, the highest feed-in tariff rates are offered by AGL, Amaysim, ClickEnergy and DC Power Co. A comparison of the maximum solar feed-in tariff offered by these retailers will help you go for the best. The maximum solar FIT offered by AGL and Amaysim is 20.0c, for Click Energy is 18.0c while for DC Power Co it is 15.0c.
Any extra energy generated through your solar panels can be sold back into the grid based on the feed-in tariff rate applicable. While going for the best rate is important, you also need to take into consideration the usage rate and the supply charges. This indicates that the highest feed-in tariff may not necessarily be the best. Make sure to understand the offers and conditions properly and go for one that best suits your circumstances.