To support its renewable energy initiative the government instituted the feed-in tariff (FiT) to incentivise investment in microgeneration. The feed-in tariff essentially pays homeowners with approved solar PV systems for generating their own electricity.
It is comprised of two elements – the generation tariff and the export tariff. With the generation tariff you are paid a fixed amount for each unit of electricity you generate. With the export tariff you are paid for electricity you generate but don’t need – this gets automatically sold back to the electricity grid.
Once a solar PV system is installed and registered, the tariff levels are fixed for 20 years* and are indexed-linked to provide a guaranteed return on investment.
|Band (kW)||Standard generation tariff (p/kWh)||Multi-installation tariff (p/kWh)||Lower tariff (if energy efficiency requirement not met) (p/kWh)|
|4kW (new build)||15.44||13.90||7.10|
*Eligibility date 1 Nov 2012 – 30 Apr 2013