What’s going on with these feed in tariffs?
This is a very common question from those in our community considering a grid connect installation on their home. Currently, NSW only has a net feed in option available to those that purchase and install grid connect solar on their homes. What this means can be summarised as follows;
- Whatever renewable energy your grid connect system generates during daylight hours, it offsets what you are consuming at the same time. You are using that renewable energy directly in your home and therefore don’t have to buy that energy from the grid.
- Generally speaking, this amounts to approximately 30% of the average 24 hour energy usage of a typical NSW home.
- You can then reasonably expect to be able to offset approximately one third of your quarterly electricity bill with a correctly sized grid connect system
Previously in NSW, homeowners were eligible to access a gross feed in tariff system where all the renewable energy generated by the grid connect system was exported to the grid at either 60c/kWhr or 20c/kWhr. Under this scheme, it was possible to completely offset your electricity bill. This is no longer the case in NSW.
Most other states in Australia and many other countries overseas have reduced the generosity of their schemes to reflect the current economic climate and the decreased cost of solar internationally.
Feed in tariffs are intended to support the growth of the solar industry and reduce the cost of equipment. This has happened internationally, however, you could not confidently say that the process has been managed particularly well, as evidenced by the “boom and bust” nature of the solar industry, in Australia over the last 5 years.
If you’d like to enquire about a solar grid connect system for your home or business, call us on (02) 4474 5903 and we can discuss how you can benefit from going solar.