Feed-in tariff's for Solar Power - Australia Wide Solar

After all the recent setbacks for solar power, due to the introduction of means testing for the solar rebate, there is some good news. This is about the introduction of the first gross feed-in tariff in Australia into the ACT.

What is a Feed-in Tariff? It is the premium rate paid for electricity fed back into the grid from a renewable energy source like a solar system or wind turbine. Around the world, 40 countries have introduced feed in tariffs. Germany introduced this payment scheme in 1991 and it has been responsible for a seven-fold increase in installed PV. By comparison, Australia installs less than 0.5% of Germany's capacity.

Several Australian states already have feed-in tariff schemes in place - South Australia, Queensland and Victoria have introduced net feed-in tariffs which means they pay homeowners for the electricity exported to the grid minus what is consumed in the home at the time it is produced. At Australia Wide Solar, we believe that there should be a National Feed-In Tariff and it should be a Gross feed in rate. This means that you are paid for all the that you are paid for all the energy made by your system and any extra power you use from the grid you buy at the current rate. For example, a home that uses on average 20kW per day and has a solar system that produces on average 10kW per day will be paid for that at say 60 c per kW ($6.00) and will pay say 15c per kW to the energy company for the power it uses to supplement the solar system. Net daily gain would be $4.50. On Wednesday July 2nd, the ACT Parliament passed the Electricity Feed In Tariff Bill which approved Australia's first gross feed in tarrif. The bill comes into effect no later than July 2009 but there is every expectation that this bill will be effective before the end of this year.

Key features of the Bill are payment will be 3.88 times the tariff - approx 60c/kWh. Both business and the residential sector can benefit. This is also the first time there are incentives place to encourage the commercial sector to invest in solar power. Australia Wide Solar congratulates the ACT government - Per annum the net gain would be $1629. Come on NSW you are now lagging behind!