How Feed-In Tariffs Work: Making Money From Solar

Harnessing the power of the sun isn’t just good for the environment, it is also a smart financial move. One way to make solar energy even more profitable is through feed-in tariffs. These schemes reward you for the excess energy your solar panels produce, turning sunshine into money. 

Let's break down how feed-in tariffs work and how you can benefit from them.

What Are Feed-In Tariffs?

Feed-in tariffs are payments made to solar panel owners for the electricity they generate and feed back into the grid. Essentially, when your solar panels produce more electricity than your household uses, the surplus is sent to the electricity grid. Your energy provider compensates you for this extra energy, which shows up as a credit on your electricity bill.

How Do They Work?

The process is straightforward. When your solar panels generate electricity, it first powers your home. If there’s any surplus, it’s exported to the grid. Your electricity meter tracks how much power you export. Depending on your feed-in tariff agreement, you receive a payment for each kilowatt-hour (kWh) of electricity you export. This payment rate varies by region and energy provider.

Types of Feed-In Tariffs

In Queensland, there are mainly two types of feed-in tariffs:

1. Solar Bonus Scheme (44c feed-in tariffs): This scheme, available to those who installed their solar systems before July 10, 2012, pays 44 cents per kWh. It's a fantastic rate, but it's closed to new applicants. Those who are already signed up can continue to benefit until 2028.
   
2. Market Feed-In Tariffs: These are available to new solar customers and offer a variable rate, generally between 6 to 10 cents per kWh. The rate depends on the energy retailer and can change based on market conditions. While it’s lower than the Solar Bonus Scheme, it still offers a substantial saving.
   

How to Maximise Your Feed-In Tariffs

Optimal System Size: Ensure your solar system is appropriately sized. Too small, and you won’t generate enough surplus. Too large, and you might overinvest without enough return.

Energy Consumption Habits: Adjust your energy usage to maximise surplus export. Run high-energy appliances during daylight hours when solar generation is at its peak.

Compare Retailers: Different energy retailers offer different feed-in tariff rates. Shop around and switch to a retailer offering a better rate to maximise your earnings.

Monitor and Maintain: Regularly check your system's performance. Clean your panels and ensure they’re in good working order to keep them efficient. We offer solar panel cleaning and maintenance packages at iinergy to make sure your solar panels are in top shape!

Why Choose iinergy?

At iinergy, we specialise in helping you get the most out of your solar investment. From installing the right system to guiding you through the best feed-in tariff options, we’re here to support your journey towards energy independence and financial savings. Visit our website to learn more about our services and how we can assist you in making the most of your solar power.

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