A feed-in tariff is an incentive which is paid to you by your electricity retailer for the export of any excess electricity that your solar system generates. Oftentimes confused with the ‘rebate’ (STC/LGC incentive) the feed-in tariff is another additional incentive that is used to help increase your return on investment on the solar system.
It is important to know that not all state governments offer Feed-in Tariffs. Your FiT will be credited to you through your electricity retailer. This is applicable to both owner-occupied and rental properties, however it is best to check with your electricity retailer.
This is because electricity retailers are not obliged to offer any incentive, they may even cease to offer incentives in the future. When calculating your solar return on investment, you should start your calculations with the assumption that you will receive no feed in tariff.
The amount that you will receive for your feed-in tariff rate depends on your electricity plan, your electricity retailer, as well as state and territory rules. It is also important to note, that some electricity retailers may not offer a tariff, or would simply offer lower tariffs in comparison to their competitors. Please check with your electricity retailer regarding their solar feed-in tariff rates and compare those rated with other alternative retailers to bet what is best for you.
Keep in mind, depending on the area you live, your Electricity Distributor may not approve a full export of your desired solar system. This could possibly due to high penetration of solar in your local area, or you are seeking for a higher than permissible solar limit for you for your local area. Also note, in most of the states, applying for a pre-approval is free.
To read more about how to obtain the feed-in tariff, you might be interested to read [How to Export Your Excess Solar Power to the Grid] and [Why DoI Need to Reconfigure My Meter for Solar?]
