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Solar Rates And Tariffs
Energy costs take a significant percentage of your monthly expenses. Investing in solar panels for your residential or commercial property in Adelaide is a great way to save on energy costs since you no longer have to pay electricity bills at the end of every month.
The good thing is that with the right solar panels, you still enjoy the same amount of power you would get if you use electricity, but with no costs involved. You must have heard about the solar feed-in tariff when investing in solar panels. This article explains how the solar feed-in tariff works.
What Is A Solar Feed-In Tariff?
A solar feed-in tariff refers to a policy that is created to promote the use of renewable sources of energy. It involves a rate paid to property owners in Adelaide who put electricity back into the grid. All the property owners who use wind turbines, solar panels, and other generators can send back unused power into the electricity grid for others to utilise.
The property owners get a small rebate for each kilowatt-hour they export in exchange. For instance, if your home produces 16kwh of electricity when it's sunny but uses 10kwh of power, the remaining 6kwh gets exported into the electricity grid in return for a solar feed-in tariff.
Solar feed-in tariff rebates and the savings you enjoy by producing your own power help reduce your energy bills. Besides, you get a return on your investment more quickly. Thus, consider the feed-in tariff and standard electricity rates if you invest in solar panels.
Do You Get A Feed-In Tariff When Renting?
One of the questions that most people ask is if they can enjoy a feed-in tariff when living in rental properties. The answer is yes. If you live in a rental house with solar panels, you should get a solar feed-in tariff for the electricity that the house exports to the grid.
However, if you stay in a townhouse or apartment, you should have an electricity meter separate from the other houses to enjoy a solar feed-in tariff. This allows your solar exports and power usage to be determined and billed effectively. Thus, before you enter any rental property agreement in Adelaide, you should carefully read the terms and conditions. This lets you know if your landlord allows you to get the solar feed-in tariff.
How To Sign Up For A Solar Feed-In Tariff
You should have any renewable generator and solar panels to sign up for a solar feed-in tariff. In most cases, your generator should be less than 100kW. Once your solar system is installed, you should apply to your electricity provider to get the solar feed-in tariff.
You must fill out a solar connection form and produce all the required documents showing that the installation work was done by a qualified and accredited professional. Another important thing is to make sure that your meter is reconfigured or upgraded to allow practical measurements of solar exports. You can sign up for another electricity contract suiting your property's new needs.
How To Get An Excellent Solar Energy Provider
A solar feed-in tariff is critical for a good return for investing in solar panels. However, it is also worth noting that a high solar feed-in tariff doesn't always lead to reduced power bills. For instance, your electricity retailer might provide a sizable feed-in tariff but has excess usage and supply rates.
This will mean that the savings you make from the feed-in tariff get lost since you pay more for power. With a small solar system, you might not export enough electricity to receive a lot of value from a high feed-in tariff. In this case, it is better for you to focus more on lower electricity rates. On the other hand, you export much more power with an extensive solar system, so your focus should be to get an excellent feed-in tariff.
Thus, your personal needs and situations determine the solar energy provider to choose. You should know your individual needs and then search for the best provider. Consider other factors such as supply rates, conditions, electricity usage rates, contract periods, and feed-in tariffs. Compare the different solar providers to get the one that suits all your needs and offers the best feed-in tariff.
Your power usage determines whether you need the single rate or variable rate feed-in tariff. With a solar battery, a time-varying tariff is the best option for you since you will be able to store electricity produced during the daytime. You can then export power at peak times when the feed-in tariff is high.
How The Solar Feed-In Tariff Works
Your energy provider usually pays the solar feed-in tariff for the extra power you generate. This is unlike a rebate that the government usually pays. The process of paying the tariff is generally self-explanatory. When the energy firm gets energy from you and is in the primary electricity grid, they can charge others for the energy they use.
Since several energy companies deal with these tariffs, you need to choose the one with the best rates since they don't pay a similar amount. If you have rooftop solar panels in your home but don't get any feed-in tariff, this means that your electricity plan does not have a buyback feature. You can rectify this by changing your energy plan or your energy provider.
You need to know about three types of feed-in tariffs to understand how it works. There are the gross feed-in tariffs and net feed-in tariffs. The two work differently but pay for your solar system's power back into the electricity grid. Let's look at the three.
Gross feed-in tariffs
With gross feed-in tariffs, your energy provider will credit you for your solar system's total solar energy and returns to the grid. They charge you separately for the power that you use.
Need feed-in tariffs
For this tariff, your solar energy provider credits you for the solar energy you generate once your home consumes the electricity it needs. One important thing to note is that even if your system fails to produce enough electricity to power your home, your provider will charge for the excess electricity used.
Time-varying feed-in tariffs
Standard feed-in tariffs are usually single rates. This means that you get a similar price for solar, no matter when you export to the electricity grid. There is also the variable rate or time-varying tariff whereby you receive more feed-in tariff when you export during the peak period, mainly between three pm to nine pm on weekdays. You receive the least if you export during the off-peak time, mostly from ten pm to seven am.
Taxation Of Income From The Feed-In Tariff
There is no taxation for the income you earn from the solar feed-in tariff. This is because the income cannot be deemed to be acquired from a particular activity. If the income is taxed, it would mean that you installed the solar system to make money and profit, which is not the case. The income is also not taxed since the solar system installed in your home or business is considered personal use but not a profit-making scheme.
GST (Goods and Services Tax) is not payable on the money you earn from the feed-in tariffs unless you earn more than $ 75,000 per year. Thus, you are not eligible to pay any GST unless your income goes beyond this amount. However, it is also worth noting that this amount is much higher than most homes in Adelaide can earn from the feed-in tariff.
Thus, as you sign up for a solar feed-in tariff with your energy provider, there is no need to worry about GST. You also don't have to register GST. However, if you use the solar system in your business or commercial properties, the situation is different. In this case, you need to register and pay GST. So, if you install the system for your business, you need to ask your energy provider for more information regarding how to do the registration and make the payment.
Which Is The Best Feed-In Tariff For You?
It is tricky to tell the best tariff that can work for your home or business needs in Adelaide. This is because they differ between states, retailers, and your circumstances. Thus, it is necessary to compare the different options before deciding on the right tariff.
It's good to consider that energy providers may give you the least solar feed-in rate the government offers but can also provide you with higher rates. If you receive high feed-in tariff rates from your provider, you should also check if they charge you more for the electricity you consume in your home. To choose the best feed-in tariff for you should consider:
- Feed-in tariff on offer
- Amount charged for electricity
- The daily supply charges
- Fees and discounts offered
It's good to note that all power providers offer solar feed-in tariffs and are only applicable for residential home energy. Thus, you do not receive the feed-in tariffs if you aim to use the system for commercial energy production. You get paid in terms of cents per kWh. The payment rates depend on your energy provider and the area you live.
Solar Feed-In Tariff FAQs
Can you apply for a solar feed-in tariff before installing solar?
You cannot make the application before installing a solar system in your business or home. It's also worth noting that you don't get the feed-in tariff immediately after you install the system. You should first contact your energy provider to know the eligibility requirements and all the offers provided.
What are the advantages of solar feed-in tariffs?
There are several feed-in tariffs benefits depending on the amount of power you send back to the electricity grid. Some significant benefits include reducing electricity costs, getting paid for the extra energy you send to the grid, and conserving the environment by reducing greenhouse gas emissions.
Is it a guarantee I save money when using solar power?
In most cases, you save money when using solar energy in your home or business. However, this is not a guarantee. Solar energy can help you save, but the amount saved depends on several factors such as the size of your solar system, whether you belong to the net or gross feed-in tariff, how much your system is exposed to the sun, and the amount of electricity used.
How do I know my feed-in tariff?
You should contact your electricity provider or check your energy bill to know the tariff you are on. It is necessary to understand the tariff you belong to because the prices vary between providers.
What is the difference between solar feed-in tariff and rebates?
When it comes to energy, solar rebate and tariffs are different. A solar feed-in tariff is a specific rate paid per kilowatt-hour of power your system exports to the electricity grid. On the other hand, a solar rebate is the government initiative to assist you in paying for rooftop solar system installation.
Excess Electricity Exported To The Grid
The solar feed-in tariff is one of the best policies that encourage people to use solar power as an energy source in their homes or business. Thus, it is good to ensure that you also enjoy the benefits that come with the solar feed-in tariffs. The most important thing is to ensure that you get the best energy provider in Adelaide, Australia, to get the best rates.
Take time to choose the best solar energy provider among the many to get the best solar feed-in tariffs. This will ensure that you save a significant amount on your energy bills. Therefore, if you have or are considering using a solar energy system, a professional solar company can help you with installing and servicing your solar panels.