As this blog is written the writing is already on the wall. The feed in tariffs for solar powered homes are being rolled back. It is dramatic and it is going to hurt a lot of Australian households.
The feed in tariff (FITs) is the amount of money that the power companies pay for electricity that is fed back into the grid. When a solar powered home is not using the power that is being generated off their roof, the power is sent back down the grid. This power is paid for on a kilowatt-hour basis.
When solar was in its infancy, the Australian government encouraged solar adoption through FITs that paid up to 60 cents per kilowatt-hour. This was overly generous and provided the homes with a good source of extra income. Now the party is over and the government is reducing the FITs across the nation.
NSW is going to be hit very hard with the FITs being wound back from 60 cents down to 5.5 – 7.2 cents per kilowatt-hour. Victorian households will fair a little better with the FITs being reduced from the 25 cents per kilowatt-hour down to 5 cents. South Australia will fall from 16 cents down to 6.8 cents.
The rollback is due to start this September and will be completed by January 2017. These changes are going to hurt Australian households and for many, the way solar power is used will change forever.
Solar power for many is no longer going to be a roof top source of revenue. The power produced will need to be used by the home in the most efficient ways possible. Ultimately this will mean that homes will become less dependant on fossil fuel power generation companies – which in the long term is a good thing.
For those who are going to loose their high FITs here are some good tips produced by Energy Consumers Australia:
- Use more of your solar by setting timers to run big appliances during the day
- Shop around for the best deal from energy retailers
- Think twice about using gas power
- Look into getting a smart meter to monitor consumption
- Consider getting a solar battery
To sum up, households need to use the solar power well and reduce wastage. To achieve this there are two products currently available to help households:
- The solar powered hot water system (heat pump)
- A battery storage system
The heat pumps are designed to utilize the solar power during the day so hot water is available day and night. As hot water can account for up to 25% of household energy, the heat pump can provide an enormous saving.
Solar storage through a battery system has always been the holy grail of solar power. The battery captures the unused power sot it can be sued when power is required. A battery system ensures no solar power is wasted.
If your home is going to be effected by the reduction in FITs then it is time to act. Call True Value Solar and discuss this with one of our Solar Experts the various options for saving your solar power.