Incentives and Feed In Tariffs for Solar
As solar water heaters and solar power are so good for the environment, governments at Federal and State levels offer incentives to help you make the switch. While feed in tariffs offered by energy providers ensure any excess solar power you produce is not wasted.
Both net and gross feed in tariffs have been introduced by various governments. Net FIT’s generally pay comparatively little to the producer (generally a household) because electricity produced by solar photovoltaic or other renewable energy just offsets the producer’s usage. Net FIT’s are referred to as “fake feed-in tariff” and is actually net metering, with a monthly payment for net generation, instead of the normal roll over. Gross tariffs conform to the normal definition of a feed-in tariff, and provide a more certain financial return, paying for all electricity produced, even if it is consumed by the producer, reducing or helping meet peak demand. ref: en.wikipedia.org/wiki/Feed-in_tariffs_in_Australia
Government Incentives Help You Save on Solar Hot Water and Solar Power
Small-scale Technology Certificates (STCs)
The Federal Government offer incentives under the Renewable Energy (Electricity) Scheme to households that install solar hot water and solar power systems. These incentives come in the form of Small-scale Technology Certificates (STCs).
For a solar hot water system each STC represents 1 megawatt hour (MWh) of electricity displaced over a 10 year period.
For a solar power system each STC represents 1 megawatt hour (MWh) of renewable electricity produced over 15 years.
Therefore the number of STCs produced depends on the size of the system and your location. Australia is divided up into various zones based on how much solar energy is available for a solar water heater or solar power system in a given area. So the same sized system installed in Melbourne (Zone 4) has a lower rating and receives fewer STCs than those installed in Darwin (Zone 1) because Melbourne has less sunshine so less solar energy is available.
Once you install a solar water heater or solar power system the STCs produced can be traded and sold on the open market. You can assign the right to create your STCs to your Solahart Expert who will pay you the value of the STCs as an upfront discount on your system.
To find out how much you could receive check out our incentives calculator.
Further information on STCs can be found here.
To download an STC Form please use this link – SHW STC Assignment Form
Sell Your Excess Power Back to Your Energy Provider
Feed In Tariffs
Some state governments and electricity providers offer preferential feed in tariffs, to provide a further financial incentive to switch to solar power.
The most common system offered today is called a net feed in tariff. With a net feed in system you use the electricity you generate and any excess is sold back to your electricity provider. Electricity can still be purchased at night, when you are not generating it. The saving is represented as a credit on your electricity bill.
Queensland State Feed In Tariff
The Queensland Government Solar Bonus Scheme is a program that pays domestic and other small energy customers for the surplus electricity generated from roof-top solar photovoltaic (PV) systems that is exported to the Queensland grid. It commenced on 1 July 2008. The scheme provides for 44c/kWh (around twice times the current general domestic use tariff of 21.35c/kWh (including GST)) on the net amount exported to the grid, subject to having proper metering installed.
A feed-in tariff will ensure that Queenslanders benefit from the federal Photovoltaic Rebate Program.
It is now 8c/kWh, but with AGL it’s 16c/kWh and 14c/kWh with Origin.