When you get solar panels, you become an electricity prosumer – you both consume and produce electricity, and you’re paid a solar feed-in tariff (FiT) for the electricity you export to the grid.
With the goal of reducing your power bill, it makes sense that you’d look for the highest solar feed-in tariff you can find. But that’s not always the best financial decision.
Beware of artificially high solar feed-in tariffs
When it comes to FiTs, if it looks too good to be true it probably is.
This is because the electricity market values rooftop solar power between ~6 and ~10 cents per kWh (depending on which state you live in). This might seem low compared to the amount you pay for the electricity you buy, but it all comes down to generation costs, consumption costs and supply and demand. If you’d like to find out more, check out our blog on the true value of solar power.
Therefore, if the value of your solar power is 6-10c/kWh, a power company offering a solar feed-in tariff that is much higher than this is probably employing some strategies to be able to afford to pay you more than what your solar power is worth.
Often, these include:
- Exorbitantly high rates – Hiking up the other rates (such as the usage rate and daily supply charge) in order to compensate for the higher solar feed-in tariff.
- Limited time FiTs – The high solar feed-in tariff only lasts 6-12 months after which time you’re moved to a much lower feed-in tariff.
- FiT depends on other factors – The high solar feed-in tariff is only available to people who meet certain criteria. For example, it’s only available to customers who got their solar panels through that company.
There’s more to consider than just the solar feed-in tariff
In order to choose the best energy plan for you, it’s important to look at more than just the solar feed-in tariff. Look at any T&Cs tied to the plan and FiT, look at the usage rate and daily supply charge and see whether the company offers services to support you to get the most out of your solar system.
At DC Power Co, we believe solar customers deserve transparent pricing and services to support them to maximise their solar savings.
The reality is, if you’re on a standard FiT (which most solar households are), your feed-in tariff will be less than the rate you pay for electricity. That means exporting your excess solar power and earning a feed-in tariff is far less financially effective than using your solar power in your home and reducing the amount of energy you have to buy.
Use more solar and buy less electricity with a battery
With just solar panels, any solar power you’re not using when the sun is up is exported to the grid. By getting a solar battery, you’ll store that excess solar power to use anytime of the day or night and, in doing so, the average solar home can boost the amount of solar power they’re using from around 25% to 80% or more. That’s the key to saving more on your energy bill.
Our Sungrow Battery Package is a powerful yet simple and affordable battery package that’s compatible with any existing solar system.
Starting at just $6750 plus installation (or $3375 with the Victorian battery rebate), it’s a modular battery package that comes with great warranties and blackout protection included at no extra cost.
Don’t have solar panels yet? Our solar and battery package is designed for people adding solar and a battery at the same time. It combines world leading solar panels, an Australian-designed battery system and local, experienced installers. View the solar and battery package