Feed-In Tariffs: How to Make Money From Your Solar Power

When it comes to installing solar PV panels, the benefits are far greater than simply increased sustainability and energy-efficiency.

In fact, as solar panels become an increasingly cost-effective option for generating power for your home or business, the options you have for actually earning income from your panels increase as well.

In this article, we’ll help you understand some key points when it comes to making the most of your new solar system, including:

• Background information on feed-in tariffs: what they are, and how they work
• The eligibility criteria for accessing feed-in tariffs
• Information regarding other incredible incentives you can access by purchasing a new solar system

With 15+ years of expertise, we’re here to help you save precious time, energy and money in going solar for the very first time.

Ready? Let’s get stuck in.

What is a feed-in tariff and how does it work?

To give you a healthy understanding of the full range of benefits offered by installing solar, we’ll start with the basics.

A feed-in tariff is a policy mechanism that offers exciting financial incentives to individuals, homes or businesses that generate electricity from renewable energy sources such as solar. Under a feed-in tariff scheme, solar systems that generate and store solar energy receive a tariff (or financial payment/incentive) for the excess solar energy they export into the grid.

Of course, the process of generating electricity using renewables typically involves the installation of solar panels. The electricity generated by these systems is then fed into the power grid, which is distributed to the public.

What are the benefits of a feed-in tariff scheme?

The benefits of a feed-in tariff scheme are manifold, including:

1. Encouraging the use of renewable energy sources: Tariff schemes provide financial incentives for individuals and businesses to invest in renewable energy systems, which reduces reliance on non-renewable sources of energy
2. Offering beneficial financial incentives: By participating in a tariff scheme, you can start earning money from the solar you generate, decreasing (or eliminating all-together) your monthly electricity bills
3. Promoting energy independence: The ability to earn money via solar power generation further encourages individuals businesses to generate their own electricity, reducing reliance on the grid
4. Stabilising the grid: Feed-in tariff schemes allow excess energy stored and exported by homes to help stabilise the broader grid, promoting fewer blackouts and encouraging overall integrity
5. Reducing emissions: Encouraging the generation of electricity from renewable sources leads to fewer greenhouse gases than fossil fuel-based power generation
6. Stimulating growth of the economy: Feed-in tariffs can stimulate economic growth by providing opportunities for investment in renewable energy systems

For many homeowners, it’s the financial incentives offered by feed-in tariff programs that often are the most alluring.

Which brings us to this question:

How much money can I earn with a feed-in tariff?

It’s a great question!

Overall, the feed-in tariff you can access will depend on several factors, including the area of Australia you’re living in, the type of renewable energy system you have installed, and the size of the system you’ve chosen.

In general, tariff schemes offer a fixed rate per kilowatt-hour (kWh) of electricity generated by the renewable energy system. The rate varies depending on the country or jurisdiction, but is typically higher than the retail price of electricity. This means that you can earn money for the electricity you generate even if you use it yourself, as you would save money on your electricity bill by not having to purchase electricity from the grid.

The amount of money you can earn via your solar tariff also depends on the solar installer you choose.

Why? Because particular solar retailers form partnerships with energy companies who, in turn, deliver memberships to Virtual Power Plant (VPP) programs. VPPs are virtual systems that use software and communication technologies to aggregate multiple small-scale energy generation sources, such as solar panels and batteries, to act as a single power plant.

Which company offers the best feed-in tariffs?

When it comes to solar feed-in tariffs in Victoria, there is a great deal of variance in what’s available to consumers.

As of 2022, Solar Choice noted that the maximum available feed-in tariff for Victorian homes was around 12c/kW.

Wrapping up

Confused about where to begin?

With 15+ years of solar expertise and as a SunPower Elite Panter, Enphase Premium Installer and Tesla Powerwall Certified Installer, we’re here to help you become more confident, informed and ready to choose.

Give our award-winning solar team a call today on 1300 137 567, or visit our Learning Centre now to learn more.