SolarInsights: Time to Upgrade? Navigating Solar After Premium Feed-in Tariffs
Hey Aussies! If you were one of the early adopters of solar power, you likely benefitted from a generous Premium Feed-in Tariff (PFIT). But with many of those schemes now concluded, it's time to reassess how you can maximise the value of your solar investment. The good news is, even without those high tariffs, solar power remains a fantastic way to save money and help the environment. This blog post will explore your options: should you chase the best feed-in tariff available, or is it time to consider a solar upgrade?
Before we dive in, If you are transitioning to solar battery storage, you may find this guide useful: Complete Guide.
The End of an Era: Understanding Premium Feed-in Tariffs
Back in the day, when solar panels were considerably more expensive, government initiatives like the PFIT were introduced to encourage uptake. These schemes offered generous payments, sometimes upwards of 60 cents per kilowatt-hour (kWh), for excess solar energy fed back into the grid. This was a significant incentive, making solar a very attractive proposition. These schemes were legislated to run for a set time, such as the 15 year scheme in Victoria which closed to new applicants at the end of 2011.
The Reality of Current Feed-in Tariffs
The solar landscape has changed dramatically since the introduction of PFITs. Solar panel prices have plummeted, and technology has improved. As a result, current feed-in tariffs (FiTs) are significantly lower. These rates reflect the wholesale electricity market price during daylight hours, when solar generation is at its peak and there is often an oversupply of electricity on the grid.
These lower tariffs mean it's no longer as profitable to simply export all your excess solar power. Retailers also incur costs when on-selling solar electricity back to consumers in the form of network charges and retail overheads.
Option 1: Maximising Self-Consumption
The key to saving money with solar today is self-consumption. This means using as much of the electricity generated by your solar panels as possible, rather than exporting it to the grid. By using your own solar power, you avoid paying retail electricity prices, which are typically much higher than the feed-in tariff rate.
Here's how to maximise self-consumption:
- Time your appliance usage: Run appliances like washing machines, dishwashers, and dryers during the day when your solar panels are generating power.
- Install a smart meter: A smart meter can give you real-time data on your energy consumption, allowing you to adjust your usage patterns accordingly.
- Consider a smart home system: Smart home devices can automate energy usage, for example, by turning on your air conditioner only when the sun is shining.
Option 2: The Case for a Solar Upgrade
If your solar system is over 10 years old, it might be time for an upgrade. Solar technology has advanced significantly in recent years, and newer panels are more efficient and produce more power. Also, now solar Victoria has expanded its eligibility criteria for its solar system rebates to include households with existing systems over 10 years old.
Here are some benefits of upgrading your solar system:
- Increased Power Generation: Newer panels generate more electricity, potentially covering a larger portion of your household's energy needs.
- Improved Efficiency: Modern panels are more efficient, meaning they convert a higher percentage of sunlight into electricity.
- Reduced Degradation: Older panels degrade over time, losing their efficiency. Upgrading to newer panels restores your system to peak performance.
- Battery Storage Compatibility: Older systems may not be compatible with battery storage. Upgrading your system can open the door to storing excess solar power for use at night or during peak demand periods, reducing your reliance on the grid even further. You may also be eligible for a hot water rebate and a solar battery loan.
- Potential Rebates and Incentives: Government rebates and incentives, such as those offered by Solar Victoria, can help offset the cost of upgrading your system.
Feed-in Tariffs: What the Future Holds
The future of feed-in tariffs is evolving. Electricity retailers will soon have greater flexibility in setting rates, potentially leading to more competitive pricing and innovative tariff packages. This could include time-of-use tariffs that offer higher rates during peak demand periods. It's worth researching available plans to find an electricity retailer who offers a plan suited to your energy consumption and solar generation profile.
Making the Right Choice for You
Deciding whether to upgrade your solar system or focus on maximising self-consumption and finding the best feed-in tariff depends on your individual circumstances. Consider the age and efficiency of your current system, your energy consumption patterns, and your budget.
- If your system is old and inefficient, an upgrade is likely the best option.
- If your system is relatively new and you can adjust your energy usage to maximise self-consumption, you may be able to save money without upgrading.
- For those looking for more independence, adding a battery storage system could be the next step.
By understanding the changing solar landscape and carefully evaluating your options, you can continue to reap the rewards of solar power for years to come. Stay tuned to SolarInsights for more updates and tips on making the most of your solar investment.
