Plico Team 05/04/2022 10 min read

What Are Feed-In Tariffs?

Solar in Australia has been continually changing, and it can be hard to keep up with all its moving parts. For instance, what are feed-in tariffs? If you’re not sure, you’re not alone. Lots of Aussies who are looking to make the switch to solar don’t know how fluctuating feed-in tariffs will impact them. However, they’re important – they could be the deciding factor on what type of solar system you install in your home.

This blog post will explain everything you need to know about solar feed-in tariffs.


Defining feed-in tariffs.

If your solar system doesn’t have a battery, you can’t store your generated energy. So when you’ve used what you need, the surplus power you don’t use is pushed to the electrical grid.

A feed-in tariff is a payment you receive for sending this energy to the grid for others to use. 


How are feed-in tariffs calculated?

A solar feed-in tariff is a reactionary price relating to wholesale electricity prices. Wholesale energy prices are determined by the amount electricity retailers pay for power; yes, you’ve guessed it, this fluctuates as well. Most retailers will lock in a flat rate feed-in tariff that’s in line with the wholesale market price for six to twelve months. Disappointingly for solar owners, feed-in tariffs have been on a consistent decline.


Why are feed-in tariffs declining?

One of the major contributing factors to the reduction in feed-in tariff remuneration is that more Australian households utilise solar for their power. From 2007 to 2021, homes with solar have rapidly risen from 0.2% to 20% nationally. This means that more energy is being pushed to the grid by solar owners, leading to a decline in the price they’re paid.


How much are feed-in tariffs in 2022?

Feed-in tariffs vary between electricity providers and states, but, in Western Australia, it now sits at 2.5 cents for every kWh you transfer to the grid until 3pm, going up to 10 cents after 3pm. A quick Google search can show you how Western Australia’s feed-in tariff stacks up against other states. Still, regardless of what geographical location we’re talking about, the current payments aren’t enough to compensate solar users who don’t get the benefits of having a solar battery. 


In 2022 and beyond, you need a solar battery.

With feed-in tariffs providing less financial remuneration, it’s now a necessity to have a solar battery incorporated into your system. People are already catching onto this, with the number of solar batteries installed in homes skyrocketing over recent years. This has cut the price of batteries significantly – making it an even more accessible avenue for Aussies.

Why has the reduction of feed-in tariffs increased the sales of solar batteries? It’s because if your solar system doesn’t have a battery and there isn’t any sunlight (think, cloudy day or at night), you have to pay for your power off the grid. Of course, this seems counter-intuitive. After going to the trouble to research, buy, install and maintain a solar system, whenever there isn’t strong sunlight, you’re back paying for your power. Previously, this was easier to take because you were receiving beneficial and regular payments from feed-in tariffs – money that could be used to pay for the energy you needed from the grid. However, because these payments have become so minute, solar without a battery becomes an expensive endeavour.


Save money and get more self-reliance with a solar battery.

With a solar battery, you significantly cut down the expense of buying your power off the grid. For example, with Plico’s solar + battery solution, you can generate and store the majority of your energy – only needing to use the electrical grid as a last resort. This creates far greater savings than you’d make by pushing your excess power to the grid and then buying it back (you also get the safety of being more self-reliant and freeing yourself from the burden of blackouts). 

Installing a solar system with a battery, or adding a battery to your existing setup, maximises your solar savings and helps you gain greater energy independence.


Is the upfront cost of a solar battery too much? Plico has you covered.

So it makes sense to get a solar battery, right? There’s only one main deterrent – the upfront cost of a battery and its installation. The average household is looking at around $11,000 – $15,000 (in some cases even more). That’s a significant wad of cash.

Here at Plico, we realised that this hurdle has prevented people from making the sustainable and positive switch to renewable energy. That’s why we’ve disrupted the industry by creating a low weekly payment plan that has no big upfront costs. Plico members have solar panels, an inverter, and a battery installed without the hefty fees, meaning they can start saving right away. Members can also monitor their system through the Plico app and receive ongoing support for ten years.


In short, we work to make it as hassle-free and painless as possible – so your focus can be on enjoying the benefits of solar energy. Get in touch today to find out if Plico’s solar + battery solution is the right move for you.


Have a question about solar + battery?