Tips - Solar Power Systems
Understanding Feed-In Tariffs
With a grid-connected solar power system, any surplus electricity you generate is fed back into the power grid. Your electricity retailer will usually be required to buy this electricity from you, and the price they pay is called the feed-in tariff.
To encourage investment in renewable energy, many governments require power companies to purchase the electricity from home solar power systems at a premium price. This means that you may be paid more for the electricity you generate than you pay for the electricity you use.
How big a benefit you receive depends on the type of feed-in tariff that applies in your state, and how you use electricity in your home.
Gross or net?
Under a gross feed-in tariff, you receive a premium price for the total amount of electricity generated by your system, including the amount that is used in your home. In effect, all your power is exported, and the electricity you use is imported through your meter.
A net feed-in tariff only pays for surplus electricity that is actually fed into the grid. Although this sounds less generous, it depends on the amount paid. A higher premium paid under a net feed-in tariff may produce a better result than a lower premium paid on gross feed-in.
It is important to note that you will still benefit from a net feed-in tariff even if your total power consumption is less than your total power generation. Every second that your panels are generating more power than you are using, you will be sending electricity into the grid. With an import-export electricity meter in place, you will be paid for this power.
The way that net fed-in tariffs work varies from state to state and company to company. You can find out about feed-in tariffs in your state here.
Getting The Most From Your System
As a gross feed-in tariff pays you for your total electricity production, including the amount that you use in your home, you don't need to worry too much about when you use your electricity.
With the more common net feed-in tariff, it's a different story. You'll gain the greatest financial benefit if you limit the amount of electricity you use on sunny days, so you export as much electricity as possible to the grid.
Where possible, washing machines, dishwashers and electric cooking appliances should be used when there isn't much sunlight falling on your panels – early morning or late evening, or on days of heavy cloud cover. You should also minimise daytime use of electric heating and air conditioning – within reason, of course. If you have an electric hot water system, make sure it uses off-peak (night time) electricity if available.
With many retailers moving to "time of use" tariffs, selecting the right time to use power-hungry appliances will make an even bigger difference to your electricity bills.
Isn't that bad for the environment?
It's more likely to be good for the environment.
Most of Australia's electricity comes from coal-fired power stations. These are basically huge kettles that send steam to a generator. They take a very long time to heat up and cool down, so they can't just be switched off at night and turned back on in the morning. In fact, ways need to be found to use all the surplus power they generate during off-peak periods.
It's the opposite story in times of peak power demand. Coal-fired power stations can't quickly increase electricity production, so other forms of generation, such as gas turbines, need to be brought on line.
Peak Australian demand for electricity usually occurs on hot sunny days when air conditioners need to work their hardest. Solar is the perfect answer to meeting this peak load, so the more solar power you can spare for the grid at peak times, the better the result for the environment.
Networks & Feeds
