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Grid Connect Feed In Tariff

The Feed In Tariff is where the electricity retailer pays premium rate for electricity fed back into the main electricity grid from a designated small-scale renewable energy generation source; such as roof-top solar or wind turbines.

Feed In Tariffs in Australia


At present, Australia does not have a nationalised Feed In Tariff program, only State run schemes. The Feed In Tariff within each State is different.

State Current Status Max System Size Rate Paid Program Duration Model

QLD

 

Commenced July 2008

 

5 kW

 

44c / kWh  (for applications prior to 9 July 2012

8c /kW (for application after 9 July 2012)

Until 2028


Until 2015

Net
NSW Commenced January 2010 10 kW 60c 20c, 8 - 13c p/ kWh 7 years
Gross
VIC Commenced November 2009 5 kW 60 c / 20c p/ kWh 15 Years / 5 Yrs
Net
SA Commenced July 2008 30 kW (10 kW per phase) 44c, 25c  p/ kWh Varying Gross
ACT Commenced March 2009 30 kW 30.16c/1:1 p/ kWh 20 years Gross
NT Restricted to 225 rooftop PV systems in Alice Springs

45.76 c kWh.
Capped at $5 per day,
Then reverts to
23.11c p/kWh

Net


Net vs. Gross Feed-In-Tariff
A Net Feed In Tariff (also referred to as export metering) pays the Grid Connected Solar Power system owner only for the surplus energy they produce and feed back into the main electricity grid.

A Gross Feed In Tariff pays for each kilowatt hour produced by a grid connect system and exported into the electricity grid.

The economic benefit of the Feed In Tariff
Feed In Tariffs for small scale renewable energy generation is important for Australia’s climate change initiatives and renewable energy industry development.

Small Scale Solar Power provides significant environmental benefits to Australia, through reduced atmospheric pollution and the increased ability to meet the 2020 carbon reduction targets. In addition, social benefits are delivered through industry development and job creation.

When electricity is transmitted over a distance from the power stations, resistance in the vastness of wires causes some of the electricity to be lost, commonly referred to as ‘Line Loss’. By installing solar systems on the roofs of houses and other buildings (warehouses, schools, community buildings), the electricity can be supplied to not only the building on which it's installed, but the surplus can feed other buildings close by. There is minimal, to no line loss incurred.

During the summer months, it's becoming increasingly common for blackouts to occur due to an overload of the mains grid.  It's during these months that solar power installations can make their greatest contribution by increasing the amount of electricity supply to meet demand.