Do you have solar panels on your property? Or are you considering installing them soon? Then, you are looking at an excellent investment. Not only can you save energy and lower the environmental impact but also save high costs. Several financial incentives are also available for property owners who opt for solar energy.
You can earn more money with the solar power you generate through a solar feed-in tariff. The best solar feed in tariff offers significant financial benefits.
Read on to know how you can qualify to receive these benefits.
What is a Solar Feed-in Tariff?
PV (photovoltaic) solar panels connect with the utility meter that measures your property's power supply. Then, the meter has access to both the solar power and your house's main electricity supply that connects to the grid.
Your solar system is most likely to generate additional power that you do not require. The excess power goes back to the power grid through the utility meter. You will then receive money for the extra energy you generate. This payment is called the solar feed-in tariff.
If you qualify to receive a feed-in tariff, it appears on the monthly electricity bills. The rate is usually fixed as per a kilowatt an hour (kW/h).
What Makes You Eligible?
Make sure to check for the following factors that make you eligible for the best solar feed-in tariff:
On-Grid Solar Panel System
The first and most essential criteria to qualify for a solar feed-in tariff is to have a solar panel system on the grid. Your solar panels must have a connection with your region's electricity grid.
This connection allows you to receive power from the electricity grid if your property requires more energy than the solar unit generates. Similarly, if your solar power system creates more power than necessary, the energy feeds into the electricity grid. You receive payment only when the grid receives the extra power from your property.
Off-grid systems are not eligible for a solar feed-in tariff as they do not have a connection with your region's electricity grid. Batteries store any extra energy for your future use.
Renewable Generator Should Be Present on Your Property
You are eligible for a solar feed-in tariff only if the panels are on the property you own. It can be in your household, school, small business, or community organisation. You can install solar panels and other renewable generators, such as wind turbines, biomass, and hydro systems.
All your renewable generators must have a link with the area's energy distribution systems. Your solar hot water systems may not qualify for a solar feed-in tariff as they do not generate electricity.
Your solar generator systems can vary in size. Some states may have particular specifications for the size as well.
For Renters with Solar Panels
Do you live in a rented property that has a solar system? Then, you can still be eligible for a solar feed-in tariff under certain conditions. First, you have to discuss the feed-in tariff agreement and receive approval from the house owner.
If you stay in a townhouse or apartment, you need to have a separate utility meter from others in the complex. When you meet these requirements, you will receive a feed-in tariff for the power that your rented property exports.
Connection to the National Energy Market (NEM)
Your Solar PV panels need to connect to the electricity grids of the National Energy Market to qualify for a solar feed-in tariff. NEM is one of the largest wholesale markets. It aids and operates the entire exchange process of electricity between power generators and local retailers.
Power generators sell electricity to local retailers. Then, the retailers supply it to producers or customers. Similarly, when you generate solar power from your property, you can sell it to a local retailer. They, in turn, sell it to a power generator.
NEM oversees such exchanges and maintains a balance of power exchange rates. They may regulate the prices of solar feed-in tariffs according to the market's current supply and demand levels.
Submission of Documents
Lastly, you have to submit necessary documents to prove your eligibility and sign-up for the solar feed-in tariff. Your retailer asks you to fill a form related to your solar connection. Additionally, you have to submit a few documents that prove that licensed professionals installed your solar system.
The utility meter may need reconfiguration or upgrades to measure your solar exports. Discuss electricity plans and find the best solar feed-in tariff.
Feed-in tariffs help you gain financial benefits while ensuring the optimal usage of the solar energy you generate. Make sure to check your eligibility to smoothen the process of signing up for a solar feed-in tariff.