Feed in tariffs (FITs) are payments made to homeowners for the electricity they generate from a renewable energy source, such as solar, that is exported back to the grid.
What is a feed in tariff?
Your solar system produces energy that is converted into electricity that in turn powers your home. When your household uses less power than has been generated by your system, this excess electricity that isn’t used can be exported back to the grid. Your solar inverter records what is generated and exported and sends this to your electricity retailer, then via their feed in tariff you may be eligible for payment of exported electricity.
A feed in tariff is an amount agreed upon by your electricity retailer that is paid to you for any electricity your solar system produces that you don’t use, that is fed and sold back to the main electricity grid.
How do I get a feed in tariff?
When your solar system is installed your provider will submit an approval on your behalf with your electricity provider to gain approval to connect to the grid. This means that your meter can be connected and upgraded if required in future.
Benefits of feed in tariffs
Not only do they save you money by being directly credited for the electricity you don’t use, FITs also encourage consumers to be more aware of the energy they’re using and may therefore change their behaviour to reduce energy consumption. This therefore reduces greenhouse gas emissions and is a win win for the bank balance and the environment!
Are all feed in tariffs the same?
Not in South East Queensland! In SEQ, feed in tariff rates aren’t mandated and it is recommended to shop around to find the best tariff possible as retailers often offer competitive rates.
We are more than happy to advise the retailers to review to assist in determining the best option for your homes power needs. Contact us today to learn how much solar could benefit you!