What is a feed-in tariff?
A feed-in tariff is a rate (in cents per kWh) at which the electricity retailers are obliged to purchase electricity from your system. Some states are in the process of introducing mandatory feed-in tariffs, which would allow owners of Solar Power grid connect PV systems to enjoy the benefits of this buy back rate of electricity. Feed-in tafiffs, when implemented will make it even more cost effective to own Solar power PV systems.
• A Feed-in tariff is a premium rate paid for excess electricity fed back into the electricity grid from your Solar Power Grid Connect photovoltaic system. Although feed-in tariffs are legislated in many countries around the world, Australia , is only just now in the process of introducing legislation in various states which would allow homeowners of Solar Power grid connect PV systems to enjoy the benefits of this ‘premium’ buy back rate of electricity. In Canberra, for example, feed-in tariffs have been proposed at 3.88 times the current purchase price of electricity. • Feed-in tariffs, when implemented, will make it even more cost effective to own a Modern Solar photovoltaic system.
A. Feed-in Tariffs are incentives designed to promote renewable energy. Utilities must buy renewable electricity (electricity generated from renewable sources, such as solar or wind power at above-market rates set by the government. California recently passed two bills, AB 920 and AB 32, which mandate that utilities must buy back power from solar and wind power systems. The result is that if your solar PV system generates more power than you use, the utility will actually pay you for your excess power generated!
