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How Solar Tariffs Work in Australia

No matter, the sun has risen, it is a fact that solar panels in Perth always save money. During the daytime, when there is sunlight you can use the electricity which is generated for free. And in the nighttime, you can use the electricity from your local grid which will definitely reduce your electricity cost.


How does that work?


It’s very easy to understand, the excess electricity produced during the daytime is stored and sent to your local grid. This excess electricity is bought by the energy supplier and the amount they pay is set by their solar feed-in tariff.


What is a solar feed-in tariff?

Solar feed-in tariffs can be defined as the payment you get from your supplier for the excess electricity which is generated by your system and is not used for any purpose. The rate totally depends on each KW that is exported to the grid. These feed-in tariff are not paid in cash in fact they are given in a form of a reduction on the next electricity bill that you will receive.

Example: If a solar owner has an excess of 8kWh one day – and their Solar energy retailer offers a 12c FIT – they’ll get 96c taken off their next energy bill. Multiply that by 365 days and you’re saving hundreds.

What does that mean for the owners of solar panels?

It does mean that they can easily sell their excess electricity produced that they don’t use during the daytime. All they need is to find the highest expectant.


Solar Tariffs by State

Some of the Australian states have already set standard or the minimum Feed-In Tariff rates, but generally, it is totally up to the individual solar energy retailers in Perth to set their feed-in tariff accordingly. The list presented below shows the current ranges of FITs (per kWh) of some major retailers in each state.

  • Queensland feed-in tariff: (0 – 17c)

  • New South Wales feed-in tariff: (0 – 21c)

  • Victoria feed-in tariff: (12 – 15c)

  • Northern Territory feed-in tariff: (8.3 – 26c)

  • South Australia feed-in tariff: (0 – 22c)

  • Western Australia feed-in tariff: (7.1 – 7.1c)

  • Australian Capital Territory feed-in tariff: (0 – 16c)

  • Tasmania feed-in tariff: (9.35 – 14.35c)



Finding the Best Energy Provider

Having a variety in the range of feed-in tariff prices and several other benefits on the offer makes it a bit confusing to choose the best energy provider. But the most important things to look out for and consider are:

It is important to check that the provider has:

  • Transparent prices – This means there should not be any hidden fees that are charged later or confusing rates.

  • Flexible plans – The plans should have flexibility so that it becomes easier for you to choose the best feed-in tariff suitable for your property.

  • Freedom from the contracts – There should not be any long-term contracts.

But after all these, the most important is that they should have a generous feed-in tariff.

Future solar WA has the best energy service provider in Perth and also offers impressive feed-in tariff, at affordable electricity prices and also they don’t lock you for long-term contracts making it a flexible and less complicated procedure. If you want the best deal for yourself, we are here to help you out completely as we recommend the best for you.


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