What are the benefits of switching to renewables? What if I told you that you could generate electricity and get a higher price for the power you generate? You may or may not have heard about the Solar feed in tariff! It is a government-run incentive that incentivizes the adoption of renewables.
In the case of feed-in, the government pays a higher rate for the electricity generated by the user compared to the market price. At present, a feed-in tariff offer is available in 40 countries worldwide. It is widely considered one of the most effective ways to adopt renewable energy resources.
Understanding Feed-In Tariffs (FITs)
Feed-in tariffs are there to promote renewable energy resources among the common user. A feed-in tariff usually requires a long-term agreement. The price is fixed in the contract because consumer producers from some of the risks inherent in renewable energy production, encouraging investment and development that otherwise might not occur.
Anyone who produces renewable energy in his home can take advantage of feed-in tariffs. The groups can include homeowners, business owners, farmers, and private investors. Benefits of feed-in tariffs:
- You get grid access, meaning energy producers will have access to the grid.
- They get long-term contracts for a period of 15 to 25 years.
- They get guaranteed, cost-based purchase prices, so the consumer can benefit a lot.
Legacy feed-in tariff program closures
Consumers who opted for Solar feed in tariff 2012 got huge feed-in tariffs. Still, the government reduced the incentives after that. Also, several legacies’ feed-in tariff incentive payment rates ceased at the end of 2016.
Gross vs. net feed-in tariff
There are two types of payment: gross and the other is net feed. Net feed means that the consumer gets paid for the surplus energy they produce. At the same time, a gross feed-in tariff pays for each kilowatt-hour produced by a connected grid system.
State Solar Feed-In Tariffs
State and Territory governments in Australia have adopted different approaches to lure consumers into adopting renewables. This approach is a solar feed-in tariff, sometimes known as a solar bonus scheme or Solar feed in tariff. You get paid for generating electricity that you send back to the grid. There have been many changes made to feed-in tariff legislation in all states and territories over the past few years.
This content must have cleared your concept regarding feed-in energy. It is a great way to earn money on your production power. Installing this system allows you to cut down your total bill and improve your lifestyle. However, the premium tariffs are no longer in place. Low solar PV system prices mean that they are no longer the incentives involved as it was before. Nevertheless, still, it is a great way if you want to save on your bill.