Last month, the NSW Government recommended a 44% cut to solar feed-in tariffs. So, what does this mean for households thinking of going solar?
The best way to get bang for your solar buck is with a battery. Installing a solar system with panels only means you will be pumping up to 75% of your energy straight to the grid and getting next to nothing back from your electricity provider. The solution? Don’t give your power away to Big Energy – generate, store and use it yourself, with a battery!
Last month, the NSW Government’s Independent Pricing and Regulatory Tribunal (IPART) recommended a 44% cut to solar feed-in tariffs. So, what does this mean for households thinking of going solar? Well, let’s take a few steps back and attempt to explain the completed beast that is solar feed-in tariffs.
What are solar feed-in tariffs?
When you install solar panels, the sun generates power from your rooftop. If you’re home to use this power, you can use it without pay a cent for it!
But if you’re not home to use your solar power, it gets pumped back into the grid and you get a credit for it. That credit is called the ‘solar feed-in tariff’.
Feed in tariffs have gone down over time
Australia’s first solar boom was around 6 years ago. At this time the Government introduced fantastic incentives as high as $0.60/kwh for households to feed solar energy into the grid. Households that installed solar panels were reaping incredible benefits, earning hundreds of dollars in credits which subsequently slashed their energy bills.
Of course, this was short lived. These tariffs got progressively reduced over time, with last year at $0.12/kWh – an 80% drop!
But it didn’t stop there – last month they dropped again, with the recommended solar feed-in tariff going all the way down to $0.065/kWh – which households are sending their energy back to the grid for around 6 cents, and being forced to buy it back at night for $0.26/kWh – 4 times the price!
So, how can you beat the system? Instead of gifting your power to Big Energy, you can get a battery in order to store your solar electricity and use it at night when you need it.
The solution? Batteries!
The only way to fully reap the benefits of solar is with a battery. Every state is different and every energy retailer is different. But, one thing remains consistent – batteries have never been more important.
Batteries allow you to generate, store and use your own energy, day and night. That way you can use your solar power when you need it – not just when the sun is shining. With solar panels and a battery, you can be up to 90% energy self-sufficient and you’ll never have to worry about reductions to feed-in tariffs.
For too long, Australians have placed their trust in Governments and Big Energy to give them a fair go when it comes to energy prices – it’s time to take matters into our own hands.
Batteries are more affordable thank you think
Using ShineHub’s bulk-buy Community Solar approach, a 5kW solar and battery system with an 11kWh battery costs approximately $12,000. The quickest, easiest and most cost-effective way of doing this is by making sure your system is installed with a hybrid inverter.
Many of our customers are seeing huge results following the installation of solar panels and battery systems. David and Jenny Kidd recently upgraded their small solar system by adding extra panels and a battery to their home, at a cost of approximately $12,500. Their savings were instantaneous. The couple saw their bills drop from a conservative $120 a month to just $3.79. Read their story here.
Want to find out more about feed-in tariffs, batteries or hybrid inverters? Book a consultation with one of our solar experts!