Q1 – What is a feed in tariff?


Answer – When your solar energy system produces power it feeds back in to the grid. The power company pays you a tariff or “buy back” rate for that power which offsets the cost of the power you draw from the grid and use.


Tariff amounts per kwh have varied over time with increases in solar systems installed. The respective power companies have different rates and the rates also vary between states somewhat.


If we had to put a rate guide on paper it would be 8 to 12 cents per kilowatt hour generated but they can be between 0 and 18 cents. When choosing a power company to supply your power it is a good idea to check the tariffs being offered by different suppliers and do some calculations on your expected net bill. Look out also for changing charges and tariffs with the time of day.