Over the course of last year many consumers could be forgiven in thinking solar was about to radically change on 1st of January. This hype was primarily centred around the reduction in feed-in tariffs and the government rebates (STCs).
Now 2017 has arrived and now the dust is settled, it is probably a good time to look at solar in relation to existing and new systems. Can an existing system still be worthwhile once the FITs are removed? Is a solar system still worth buying? These two key questions need to be addressed.
Let us look at existing systems. Many solar owners have enjoyed FITs being as high as 60 cents per kWh. This level of return gave the solar owners the ability to sell their power a much higher rate than the purchase price thereby turning their solar system into money making machines.
The very high FITs were originally designed to encourage homeowners to consider and buy solar when the market was in its infancy. Times have changed, with solar systems becoming far cheaper and the uptake on solar at record levels. These unsustainable incentives could not last forever and changes had to be made.
It is import to note the both Victoria and South Australia are not removing the entire feed-in tariff payments. Victoria program will last until 31 December 2014 while South Australia will last until 30 June 2028.
Another very important factor are the net metering policies of Victoria and South Australia. The net metering will continue to operate, leaving the homeowners to negotiate with their electricity suppliers the best rate to sell their power back to the grid.
New South Wales customers do not fair as well as their Victorian and South Australian counterparts. Approximately 146,000 customers took up the 60 cents / kWh FITs offer. The ending of the program could see many thousands households generating power back to the grid with no guarantee of financial return and minimal power to negotiate a better deal.
No long can the New South Wales solar households rely on the FITs. The power produced off their roofs must be utilized for powering the home in the most efficient manner possible. This will require changes to when power is used and the possibility of introducing solar storage.
True Value Solar is equipped with the knowledge and expertise to assist homes in gaining the most out of their solar. We have the monitoring systems and solar storage systems to be tailored to meet the lifestyle of almost any home throughout Australia. Call one our solar experts today to discuss how we can make solar work best for you and your lifestyle.