NSW has seen a variety of different schemes for solar tariffs over the last 3-4 years:
- We had a net feed in tariff until the end of 20009
- We had a gross feed in tariff of 60c until 27th Oct 2010
- We had a 20c feed in tariff until April 2011
- We currently have a net feed in tariff (again).
Yes – it can be confusing.
So, what does it mean for you right now?
Right now, when you have a solar system you are producing power and using that within your own premises. You are ALSO connected to the grid, so the system seamlessly pulls in extra power as you need it. (There is no special system needed for managing solar v grid power).
So, when you are producing and using power, you are saving yourself from purchasing that power from the grid. That means, it is ‘worth’ to you whatever you’d have paid for that power. For many households, this is 22-25c per kWh (what is a kiowatt hour?) in Sydney…and it may jump another few cents when your usage increases within a billing period. So, many people pay on average 26c per kWh.
There are others that are on Time Of Use (TOU) billing, and depending on the time of day, may pay 8c, 19c and 44c for their power. The afternoon period 2-8pm is often “peak” and 44c. For these people, the power produced by solar is worth more.
This means that the power you produce and use is worth 22c, 26c or even 44c per kWh. And this will rise – 37% within the next 2 years. This is why solar is a good financial investment.
BUT what about when you produce more power than you use? This is a critical distinction. When you produce more than you use the power goes back to the grid and you may be paid nothing for it, or you may be paid 6c from some power companies. Either way…it is not a strong financial incentive.
IPART is advising a voluntary feed in tariff for excess power of 8-10c per kWh and will make a final report in April this year.
The important thing to keep in mind is that whatever this decision is…if you have a corrrectly sized system for your needs, this “excess” payment is irrelevant. You’ll be using the power, and it is worth much more to you. It does mean that choosing the right system size is critical, and we can help with working out what that size is by looking at your consumption patterns.
For a right sized system, the system should pay for itself in 5-6 years.
For those that have a system installed under the “gross feed in tariff” of either 60c or 20c per kWh, you’ll get that through to Dec 31 2016, then revert to whatever is being offered at the time. If you have an existing system we stronly recommend a service check, to make sure that the system is performing safely and outputting as much power as it should.
For clarity on any of the above, call us on 1300 792 011 aand speak to one of our consultants to see what will suit you best.