Feed-in tariffs are an incentive paid to owners of grid-tied solar energy systems. They are paid at a fixed rate for each unit of electricity sent back to the grid, with contracts typically running between 10 and 20 years. The price per unit stays the same for the duration of the agreement, so it pays to have professionals set up the contract and net-metering work. If you are new to this, our explainer on how solar power feeds back into the grid is a helpful starting point.
How do feed-in tariffs work?
As mentioned, a feed-in tariff is a financial incentive that encourages people to invest in green, renewable electricity. A solar system can generate enough to power your home and supply additional electricity to the grid.
At the agreed billing cycle, the electricity retailer calculates and pays you for those units. You are paid for each unit sent back to the grid, though the tariff may vary depending on your contract with the retailer. This is one reason it is important to use good-quality components in your solar system. Let us explain the benefits of feed-in tariffs.
Long-term scope
Many countries are now adopting this solar incentive to encourage developers and investors to generate renewable energy and earn a profit. The arrangement is secure and stable, so the amount invested remains well protected.
Increasing your property value
If you have a solar system in your home or office that sends electricity back to the grid, you benefit economically. By setting up net metering and a grid-tied system, you can increase the value of your property. It is also worth weighing up why solar is a smart investment over the long term.
Protecting nature
By switching your electricity needs to a solar system, you help protect the environment from carbon emissions. The air around you becomes fresher and healthier for the generations to come, and a wise decision like this contributes to a more sustainable future.
Who can help me?
Solar Air Energy has skilled energy specialists who assess and design solar systems to suit your needs and budget, so you save more on your electricity. To plan the right system, it also helps to know what size solar system you need. Get a free quote to get started.