A solar feed-in tariff, also called a FiT, is a type of credit you can get for sending back unused electricity to the grid. The FiT will often be as a set rate for every kilowatt hour given as a credit on utility bills.
The government will pay a feed-in tariff on any electricity plan for eligible customers who produce solar in Gippsland. Do note that there will be different terms and conditions for solar and electricity rates.
In this blog, we’ll discuss more about how the feed-in tariff works, how you can add it to your plan, and what happens if you exceed the feed-in tariff limit.
How Many Kilowatts Can I Feed Back Into the Grid?
Many households in Australia aren’t allowed to feed more than 5 kilowatts of energy per phase back into the grid. This solar export limit is in place in order to avoid problems associated with power surges.
Power shortages become widespread when many households begin exporting excess power to the grid all at once, causing stress to the power lines. The limitation is ideal in preventing power cuts from happening, particularly during summer.
Off grid solar system owners aren’t affected by this limitation.
How Do I Add a Feed-In Tariff to My Plan?
To add a feed-in tariff to your plan, you should call your electricity provider for more details. Keep in mind that there are eligibility criteria before you can benefit from government incentives for solar.
To qualify, you need to be at least one of the following:
- A homeowner who consumes no more than 50MWh of electricity each year
- A customer under an educational institution
- A customer that is part of a non-profit organisation
The solar panel system will also need to have a generation capacity between 500 W and 5kW to be eligible. Having a 6.6kW solar PV system possessing a 5kVa inverter is acceptable.
With regards to electric vehicle battery and home battery size, there’s no eligibility limit to worry about. However, retailers will only be obligated to offer buyback payment for 50kWh daily for each home. This amount is more than a 5kW solar system would be able to generate in a day.
What If My Solar Energy Installation is Over the Feed-In Tariff Limit?
Unfortunately, solar PV systems that are even a single kW over the solar system sizing limit won’t be eligible for a feed-in tariff. People in Gippsland will find that this rule is explicitly stated on the reference page of the Victorian government website.
The good news is that you can still feed electricity back into the grid even if you own a large system. However, you’ll only be paid the market rate for the energy that you give back.
In Victoria, you’ll need to get in touch with your network service provider to negotiate an arrangement.