Solar feed-in tariff rate cut from 60 cents per kilowatt hour to 25 cents

Following on from the reduction of the government grant for those installing solar panels the feed-in tariff is now being cut.

The solar feed-in tariff rate has been cut from 60 cents per kilowatt hour to 25 cents.... Read More

If you are considering installing solar panels make sure you do your sums. That article states: Victorian Energy Minister Michael O'Brien said that under the 25-cent rate participants would recover the cost of their solar power systems within about 10 years.

Based on the feedback in the local newspaper with the average saving of around $200 per year with the higher feed-in tariff plus the larger government grant it may be that people may never end up recovering the cost of their solar panels.

One way you may be able to recover the costs of your system is if you also reduce your energy consumption. By using a power meter plus the Energy Cost Calculator we’ve reduce our electricity usage to under 8kWh’s per day, which is well under the average of around 18kWh’s per day. It is important to minimise the base load because if you’re base load is greater than the energy produced you’ll not receive any feed-in tariff.

When you install a solar system the problem is you’ll go onto a peak/off-peak charging structure which increases your electricity bill and the 25 cent feed-in tariff is now less than you’ll pay for peak electricity usage.

Whilst this change won’t be liked by those considering a solar panel system, it does hopefully mean we all benefit (including those with solar panel systems) as it reduces the cost of electricity for everyone going up to pay for those installing solar systems.

- Kelvin Eldridge
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