Tariffs — What Are They? And How Do They Work?

When you purchase a solar system suitably sized to cover the total energy consumption for your home, it will often be the case that your array will produce more power than you can use yourself during the day.

What happens to that excess energy you make?

A Very Short Introduction to Tariffs

The overproduction is sent back to the grid (fed-in) and will then be redistributed to help power your neighbour's homes. You'll not only be reducing your own carbon footprint, but also doing a favour for your friends and neighbourhood by helping them reduce theirs.

Your energy retailer is obligated to pay you for what is sent to the grid to be redistributed. That amount they pay you just is your feed-in tariff.

So, for example, if you were to make the very wise decision to invest in a 5KW solar system now, its nominal output capacity for the State of Victoria will be 18kWhs.

If your total consumption is 20kWhs and half of that, say, is used at night: then there is 8kWhs spare going toward the grid on average.

Even Better If You Live in Victoria

In Victoria, the local government has enforced a mandatory minimum of 11.3¢ per kWh fed back into the grid for all electricity retailers with more than 5,000 customers.

As of last month moreover, there is now a very generous off-peak—shoulder—peak option available from most retailers.

As of 1 July Victoria's Essential Services Commission announced the following rates for solar homeowners,

Your off-peak rate will be 7.1¢ per kWh between 10PM-7AM Your shoulder rate will be 10.3¢ per kWh between 7AM-3PM/9PM-10PM (weekdays) Your peak rate will be 29.0¢ per kWh between 3PM-9PM (everyday)

Do yourself a kindness and be in touch today to speak to a friendly, informative and helpful consultant from Astra Solar.

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