Understanding solar feed-in tariffs from electricity providers in Victoria
As electricity providers in Australia increase their support for renewable energy initiatives in Australia, solar energy is fast becoming the way to go. In 2019, solar has become the biggest source of renewable energy solar has become the biggest source of renewable energy as its total generation increased from 7% to 9% with 1 of 4 Australian homes having it. Along with the increased usage of renewable energy, you should look for the best solar feed-in tariffs in Victoria to maximise your benefits through different incentives.
Want to know the available solar Feed-in Tariffs in Victoria so you can find a better deal from a range of electricity providers? Read on.
Facts to know about solar feed-in tariffs
What is a solar feed-in tariff?
Solar feed-in tariffs refer to the amount received from an electricity retailer as payment for any excess energy produced by your solar system that gets fed back to the grid. Each kilowatt-hour of excess energy produced has a corresponding value of cents.
While a solar feed-in tariff is not paid out in cash, the equivalent amount will be credited to the energy bill that you’ll receive from your electricity provider in Victoria.
Rankings of electricity providers in Victoria based on maximum Feed-in tariff (kWh)
• Origin Energy – 20 cents (eligible for solar panels that are purchased and installed through Origin Energy.
• Tango Energy – 20 cents (applicable for the first 3.5kWh per day and returns to their standard 10.2 cents per kWh Feed-in Tariff after)
• 1st Energy – 15.2 cents
• Momentum Energy -13.5 cents
How it works
Solar panels have photovoltaic cells (PV) which converts the suns’ solar rays into electricity. When exposed to sunlight, each solar cell causes the particles to vibrate through kinetic energy.
The vibration is converted into electrical energy as it moves from the solar panels into the solar inverter. The solar inverter turns the energy into a usable form for the electrical appliances you use.
Your switchboard is where your solar inverter is connected. It allows you the flexibility to consume your energy while the excess energy you produce is sold back to the electricity grid at a solar feed-in tariff rate.
With a solar battery, your dependence on the grid is limited and you can store the excess energy produced by your solar system at night.
Make the most of solar feed-in tariffs
While it is typical for most solar energy users to ask for a high solar feed-in tariff from their electricity providers in Victoria so they can maximise their savings, it is important to note that some energy plans with high feed-in tariffs may also come with high energy rates.
Your electricity usage is an important consideration when choosing the right solar energy plan.
If your household exports a huge amount of excess solar energy, a high feed-in tariff may be the best choice. However, if your household can barely export any excess energy, you may have a better choice with a moderate feed-in tariff to take advantage of lower usage rates.
Do you need further guidance in choosing electricity providers in Victoria with the best solar Feed-in tariffs? Electricity Wizard can help.
Reach out to us or visit our website so we can help you compare energy plans and find electricity providers that will help you get the best value from your solar system investment.