Solar FiT | BY Vimal
Looking for the best solar Feed-in Tariffs in Victoria? Thinking of going solar and calculating how to maximise your rate of return? Well, you’ve come to the right place!
This blog dives into all the available solar feed-in tariffs to help you on your hunt for a sharp deal.
Solar power uptake is soaring sky high with new incentives and great payback periods hitting the scene! With more than 2.5 million Australian households going solar, the search for a great feed-in tariff is a hot topic!
Looking for a sharp solar Feed-in Tariff(FiT)? Phone Electricity Monster on 1300 232 848 and have a chat with our energy experts today! We’ll help you find a solar Feed-in Tariff rate that gets the best out of your solar system!
In the table below, we’ve compiled a list of all the electricity retailers available in Victoria. We have ranked the electricity retailers based on the alphabetical order, including conditions if applicable.
Solar Feed-in Tariff – Victoria
|Retailer||Minimum Feed-in Tariff (kWh)||Maximum Feed-in Tariff (kWh)|
Thinking of switching to solar? Call Electricity Monster on 1300 232 848 and for a friendly chat with one of our solar experts and buy solar with confidence!
What is a Solar Feed-in Tariff?
A solar feed-in tariff is a payment you receive from your electricity retailer for any excess energy produced by your solar system that gets fed back to the grid.
Solar feed-in tariffs usually consist of a few cents that you’ll receive for each Kilowatt hour (kWh) of excess energy produced.
Generally, it’s not paid out in cash but will instead appear as a credit on your energy bill from your electricity retailer.
Unless you have a solar battery, any excess electricity your solar system produces that you don’t consume will instantly be fed into the grid.
How does it work?
The photovoltaic cells (PV) in your solar panels turn the suns’ solar rays into electricity. When sunlight is exposed to each solar cell, it causes the particles to vibrate.
The vibration is what we call kinetic energy. This is converted into electrical energy when it moves from the solar panels into the solar inverter. The solar inverter converts the energy into a usable form for your electrical appliances.
Your solar inverter is connected to your switchboard. The switchboard gives you the flexibility to use your energy and for the excess to be sold back to the electricity grid at a solar feed-in tariff rate.
A solar battery limits your reliance on the grid and stores the excess energy produced by your solar system for when nightfall hits!
Things to consider!
So when you’re looking at a solar plan, you typically look for a high solar feed-in tariff. Why though?
Because you want to see the maximum savings you were promised when you decided to switch to solar energy.
However, some electricity retailers offer plans with high feed-in tariffs but may also have high energy rates.
BUT, is the plan with the highest solar feed-in tariff (FiT) the best one for you?
It all depends on how you use your electricity!
A household that exports heaps of excess solar energy may benefit from a high feed-in tariff. But a household that barely exports any excess energy may be better off with a moderate feed-in tariff and a sharper electricity rate.
Sounds a bit complicated? That’s where Electricity Monster comes in! Call one of our friendly energy experts, and we’ll crunch the numbers to see if you’re getting a fair solar feed-in tariff rate!
Not sure what plan suits you? Don’t worry! Call us on 1300 232 848 for a friendly chat to find a balanced plan that helps you get a better value out of your solar system.
Best Solar Feed-In Tariff – VIC
In the table below, we’ve compiled a list of the top 4 Feed-in Tariff rates available in Victoria. We have analysed and ranked the retailers based on their Maximum Feed-in Tariff.
|Retailer||Minimum Feed-in Tariff (kWh)||Maximum Feed-in Tariff (kWh)|
A big 20 cents per kWh Feed-in Tariff (FiT) rate?
It’s not surprising to see one of Big 3 electricity retailers making it into our list of the top 4 feed-in tariffs.
Origin Energy offers a whopping 20 cents per kWh Feed-in rate but is only eligible if your solar panels are purchased and installed through Origin Energy.
Don’t worry though! If you already have a solar system installed, you can still get a reasonably competitive feed-in rate of 14 cents per kilowatt-hour.
How good right?
Tango Energy is an electricity retailer who offers simple plans with low prices whilst supporting Australia’s growing renewable energy sector.
Tango Energy offers a high solar FiT of 20 cents per kilowatt-hour(kWh).
The 20 cents per kWh feed-in rate only applies for the first 3.5kWh per day and returns to their standard 10.2 cents per kWh Feed-in Tariff.
Here’s the catch! To access this smashing rate, you’ll need to have purchased a solar system though Tango Energy’s preferred solar retailer.
Single vs Time Of Use (TOU) rate
There are 2 types of solar tariffs available in Victoria, depending on your respective electricity retailer. A single rate FiT and a Time Of Use FiT.
A single rate solar FiT is a simple rate you get regardless of the time of day the electricity gets exported back into the grid. This is listed in our tables above.
A TIme Of Use (TOU) FiT is where there are different feed-in tariff rates for different times of the day. These feed-in tariff rates are ideal for households where individuals spend most of the day at work.
The TOU FiT pays the rate that reflects the demand on the energy grid at various times of the day.
In the below table is an example of a TOU solar FiT from one of our partners, Energy Australia.
|Retailer||Peak (3pm-9pm Weekdays)||Shoulder (7am-3pm, 9pm-10pm Weekdays; 7am-10pm Weekends)||Off Peak (10pm-7am everyday)|
Minimum Feed-In Tariff – What are they?
A minimum feed-in tariff is a minimum rate that retailers have to offer to their solar customers.
The 2020 – 2021 single rate minimum solar FiT in Victoria is 10.2 cents per kWh.
The minimum rate is calculated by forecasting the wholesale electricity prices for the next calendar year.
Wholesale prices vary across different times of the day, and solar panels can only generate electricity during specific periods of the day. These ‘solar hours’ are taken into account when forecasting wholesale electricity prices.
Solar Feed-In Tariffs – The Verdict
There you go! We’ve given you every electricity retailer’s feed-in tariff rates and our top 4 rates available in the Victorian region.
Switching to solar is not a small commitment. It’s a long term investment with a high initial upfront cost. But if done right, has absolutely rewarding benefits!
Remember, it’s not all about a high feed-in tariff! It all depends on your energy usage.
If you’re using the energy your solar system produces and still buying electricity from the grid, then you may be better off with a sharper electricity rate and a moderate feed-in tariff.
But if you’re exporting an enormous amount of excess solar energy, then the highest solar feed-in tariff could be your best option.
We consider all factors and help to find you the best electricity plan to get the best out of your solar system! Call us on 1300 232 848 today! Speak to our team of friendly electricity experts who’ll help you get a sharp rate mate.
Important points to note are:
- Feed-in tariffs are for residential customers on a single rate tariff in Melbourne on the Citipower network. *Origin Energy’s higher feed-in tariff only available when a customer purchases a solar system through the associated energy retailer. *Tango Energy’s higher feed-in tariff only applies to the first 3.5kWh per day.
- Some plans may require you to meet certain conditions before a discount becomes available to you. Check the energy provider’s plan information for details of all possible discounts that may apply and any conditions that need to be met to be eligible for these discounts. Consider the provider’s detailed product and pricing information before making a decision to take out a new plan or switch electricity providers.
- All FIT information is based on the Price Fact Sheets taken from the respective retailers’ websites.
- The information in this blog cannot substitute for legal advice. No financial decisions should be made based on information from this blog.
- This data is accurate as of 14/01/2021