How does the Solar Feed-in Tariff work?

A Solar Feed-in Tariff is a payment you receive via your electricity retailer as a credit on your bill for the excess electricity that your solar system produces and is fed back to the grid.

 

Where customers have a smart meter (also known as an interval meter), the solar feed in rates are calculated daily to ensure an even distribution of earnings between billing periods. In these instances, we use daily bands rather than quarterly, and they work out like this:

 

VPP

Solar Smart

45c for the first 3.28* kWh per day

16c for the first 3.28* kWh per day

25c for the second 3.28* kWh per day

10c for the second 3.28* kWh per day

9c for the remaining kWh each day

4c for the remaining kWh each day in NSW (0c outside of NSW)

 

With this in mind, customers with smart meters and banded feed in rates may not reach their 300 kWh cap in each band every quarter; it depends entirely on how much solar energy is generated on each individual day. For example, if a customer generates only 1 kWh per day for 30 days, and then 10 kWh per day for 60 days, the breakdown of that 630 kWh would work out like this:

 

VPP

Solar Smart

45c x 1 kWh x 30 days = $13.50

16c x 1 kWh x 30 days = $4.80

45c x 3.28* kWh x 60 days = $88.56

16c x 3.28* kWh x 60 days = $31.49

25c x 3.28* kWH x 60 days = $49.20

10c x 3.28* kWH x 60 days = $19.68

9c x 3.44 kWh x 60 days = $18.58

4c x 3.44 kWh x 60 days = $8.26 (or $0.00 outside NSW)

Total = $169.84 credited to your account

Total = $64.23 ($55.97 outside NSW) credited to your account

 

Note that the feed in credit is calculated on daily generation totals, not quarterly totals.

 

As smart meters are now required for new solar installations and all VPP customers, it is highly likely that your system will operate per the above. If your solar system was installed prior to this requirement, you may have a basic meter (also known as an accumulation meter). If this is the case, you should find that your solar generation fills each capped band sequentially, up to 300 kWh, regardless of individual daily generation.

 

 

*actual figure rounded down to two decimal places for simplicity

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