Solar Feed

Solar Feed-in Tariffs Explained: Why the Highest Rate Isn’t Always Best

A high solar feed-in tariff can look attractive, but it does not automatically make an electricity plan better. The export rate is only one part of the bill. Usage rates, daily supply charges, time-of-use pricing and how much solar you consume at home can matter more.

At Forever Solar, we compare the full energy profile rather than relying on the largest number in an advertisement.

 

A feed-in tariff pays for eligible solar exports

Your home generally uses available solar electricity first. When the system produces more than you need, the surplus may be sent to the grid.

Your electricity retailer may pay a feed-in tariff for each eligible kilowatt-hour exported. The rate and conditions vary between retailers, plans and locations, and they can change over time.

Your bill should show exported electricity separately from the electricity imported from the grid.

 

Imported electricity usually costs more than exported solar earns

The rate paid for solar exports may be lower than the rate charged for electricity imported from the grid. This means using a kilowatt-hour of solar in your home can be worth more than exporting it and buying electricity back later.

That direct use is known as self-consumption. Running suitable flexible loads during solar hours, such as a pool pump or dishwasher, may increase the amount of solar you use yourself.

The right approach depends on your routine, appliances and electricity plan. It should not involve shifting loads when it is unsafe or impractical.

 

A high export rate can come with higher charges

Some plans offer an attractive feed-in tariff but charge more for imported electricity, daily supply or peak usage. Others may apply a higher rate only to a limited amount of exported energy.

Before switching plans, compare:

  • import rates;
  • daily supply charges;
  • peak, shoulder and off-peak periods;
  • demand charges where applicable;
  • export rate limits or tiers; and
  • the length and conditions of any promotional offer.

A retailer comparison should use your actual import and export pattern rather than assume the highest feed-in tariff will produce the lowest bill.

 

System size and export limits affect the result

A larger solar system may generate more surplus, but local network rules can limit how much electricity is exported. Some systems may also reduce output when an export limit is reached.

We’ll explain the expected export arrangement and how it affects the generation and savings estimate. A feed-in tariff should not be modelled as though every unused kilowatt-hour will always receive the headline rate.

 

A battery changes when solar is used

A battery can store excess solar for later instead of exporting it immediately. Whether this provides better value depends on the battery cost, available surplus, evening demand and the difference between import and export rates.

The tariff does not decide the battery case on its own. The full system and household usage need to be modelled together.

We can then show how self-consumption, exports and grid imports fit into your proposed design.

Want a solar plan built around how you use power? Talk to us about a tailored solar plan.