Renewable Energy

Feed-in Tariff

Date Added: 10/07/2008

It is pretty interesting that a country which receives half the sunlight that Australia does has 50% of the world's solar panels. Last year 500 times more solar panels were installed than in Germany than sunny Australia!

Why are they so keen on using solar panels over there?

In Germany, solar power is widely used among the many residents, largely because of the Renewable Energies Laws (EEG) which includes Feed-in Tariff. The Feed-in Tariff is an incentive structure provided by the government, which encourages the use of renewable energy in place of conventional energy sources. Electrical companies are obliged to provide the public with credit in return for the additional energy it feeds back into the main power grids. It operates on the principal that the utility company has to pay back the natural energy at a premium rate (more than the market price). This encourages people to generate clean power.

During the first 5 years of the Feed-in Tariff being introduced over 1,500MW of solar panels were installed. Whereas Australia has 7MW of solar panels which is less than 0.5% of solar panels that Germany. Over the last 8 years Germany has been using Feed-in Tariff's to encourage people to utilize renewable energy. When you produce your own energy in Germany, the power utility is required to buy back the energy at 7 times the price of electricity.

Feed-in tariffs are being used in around 40 countries in the world. The initial idea began in the United States but it has had the best results in Europe. It is believed that Australia is lagging behind because it is so easy for us to use local fossil fuels and its imagined cheapness.

There is good news as Australia is starting to embrace this tariff. This will have a positive impact on our air quality, environment and wallets. The number of Australian Solar panel installations has grown over 400% in the last year.

South Australia was the first state to introduce the Feed-in tariff at 2:1 in October 2006. In Adelaide electricity is sold to homes at a rate of 18c per unit but purchases are made back at a rate of 60c per unit. That is three times the amount you pay, which means a much lower electricity bills at the end of the day. Also imagine while on holidays your solar panels will be at home earning you money from the electrical companies!

VIC is soon to follow with a premium Feed-in Tariff to be introduced by 2009 of 60c per kilowatt hour. Canberra will also follow with a rate of 3.88:1 on gross renewable energy produce. This means that for every unit of electricity sent back the home owner will receive four times the price.

Queensland and WA are expected to be introducing a similar scheme soon. It is expected that Queensland will have buy back rate of 44c per kilowatt hour. With this type of government support there hasn't been a better time to switch to solar power in Australia.

The Feed-in tariff differs between states. In states where there is no set Feed-in tariff scheme, most electrical companies will buy-back the electricity from your solar panels at a set price. E.g. Energy Australia has a buy-back tariff in QLD, NSW and the ACT. Horizon Power in WA also has a buy-back rate. TRUenergy in VIC, SA and NSW will also buy back power at the cost price.
 
So check your local electricity utility to find out what is on offer and to find out more information visit Solarshop at www.solarshop.com.au.  
 
 Links to check out for more information:
 - Solarshop
 - Germany's Feed-in Tariffs
 - Australia's Feed-in Tariff