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The Queensland Solar Feed-in Tariff: Everything You Need to Know

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The Queensland Solar Feed-in Tariff (FiT) is a government scheme that allows eligible homeowners to earn money for excess electricity generated by their solar panel systems. The FiT is designed to incentivize homeowners to invest in renewable energy and reduce their reliance on the grid. In this article, we will explain the key features of the Queensland Solar Feed-in Tariff and provide some examples of how homeowners can benefit from the scheme.

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Feed-in Tariff

Key Features of the Queensland Solar Feed-in Tariff

  • Eligibility: To be eligible for the Queensland Solar Feed-in Tariff, homeowners must have a solar panel system installed on their property that meets certain criteria. The system must be connected to the grid, and the capacity of the inverter must not exceed 5kW. Homeowners must also have a solar-friendly electricity retailer to receive payments.
  • Feed-in Tariff Rates: The Queensland Solar Feed-in Tariff rate is set annually by the Queensland Competition Authority (QCA) and varies depending on the region. As of 2022, the maximum feed-in tariff rate is 10.6 cents per kWh. The QCA determines the rate based on a range of factors, including wholesale electricity prices, the cost of network services, and the value of solar energy to the grid.
  • Duration: The Queensland Solar Feed-in Tariff has a duration of 10 years from the date of installation of the solar panel system. After 10 years, homeowners will no longer be eligible to receive feed-in tariff payments.
  • Payment Method: Homeowners receive feed-in tariff payments as a credit on their electricity bills. The credit is applied to any electricity charges first, with any excess credit carried forward to future bills.

Examples of the Queensland Solar Feed-in Tariff in Action

Family Home in Brisbane: The Smith family recently installed a 6kW solar panel system on their home in Brisbane. They have a solar-friendly electricity retailer and are eligible for the Queensland Solar Feed-in Tariff. Based on their energy usage and the size of their system, the Smiths estimate that they will generate an average of 20kWh per day of excess electricity. At the current maximum feed-in tariff rate of 10.6 cents per kWh, this equates to approximately $2 per day, or $730 per year, in feed-in tariff payments. Over the 10-year duration of the scheme, the Smiths will earn a total of $7,300 in feed-in tariff payments.

Rural Property in Far North Queensland: The Jones family owns a rural property in Far North Queensland that is not connected to the grid. They have installed a standalone solar panel system that meets the criteria for the Queensland Solar Feed-in Tariff. The Joneses estimate that they will generate an average of 50kWh per day of excess electricity, which they plan to store in batteries for use when the sun is not shining. Despite not being connected to the grid, the Joneses are still eligible for the feed-in tariff payments. At the current maximum rate of 10.6 cents per kWh, they can earn up to $5.30 per day, or $1,939 per year, in feed-in tariff payments.

For more information about the Queensland Solar Feed-in Tariff, homeowners can visit the following websites:

  • Queensland Government: The Queensland Government website provides an overview of the Solar Feed-in Tariff scheme and eligibility requirements.
  • Queensland Competition Authority: The Queensland Competition Authority is responsible for setting the annual feed-in tariff rates and publishes this information on their website.

Another example of a good feed-in tariff for Queensland homeowners is offered by AGL Energy. Their solar savers plan provides a feed-in tariff of 10.6 cents per kWh for the first 10 kWh exported per day, and 6 cents per kWh for any additional kWh exported per day. This plan also offers a guaranteed fixed rate for 12 months, which can provide peace of mind for homeowners who want to plan their finances ahead.

It’s worth noting that feed-in tariffs can vary depending on the energy retailer and the location of the property. Some retailers may offer higher rates for customers who live in areas with high solar potential or who install larger solar systems. It’s important to research and compare the different plans and rates offered by energy retailers before making a decision.

In addition to feed-in tariffs, there are other factors that can affect the financial benefits of solar power for homeowners in Queensland. These include the upfront cost of installing a solar system, ongoing maintenance and repair costs, and changes in electricity prices over time.

One way to mitigate these costs is to choose a high-quality solar system that is designed to last for many years. Tier 1 solar panels, for example, are known for their durability, efficiency, and long warranty periods. These panels are made by reputable manufacturers who have a track record of producing reliable and high-performing solar products.

Another way to save money on electricity bills is to install a 6.6kW solar system, which is the most common size for residential properties in Queensland. This system can generate 28 kWh of electricity per day (average), which can offset a significant portion of a household’s electricity usage. The cost of a 6.6kW solar system can vary depending on factors such as the quality of the components used and the complexity of the installation, but generally ranges from $5,000 to $10,000.

Conclusion

In conclusion, the feed-in tariff is an important factor to consider when deciding whether to invest in solar power for your home in Queensland. By choosing an energy retailer with a competitive feed-in tariff and installing a high-quality solar system, homeowners can reduce their electricity bills and even earn money by exporting excess energy back to the grid. However, it’s important to do your research and compare the different options available to ensure that you get the best value for your investment.

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FAQs

  • How does solar work?

    When the sun is shining, solar panels convert sunlight into DC (direct current) electricity. The solar inverter converts this electricity into AC (alternating current) power for use in your home. Your home appliances (fridge, dishwasher, pool pumps etc.) use this power instead of drawing power from the electricity grid.

    Any excess electricity generated by solar panels but not used by appliances is sent back (exported) to the electricity grid or used to charge a solar battery. Electricity Retailers pay a feed-in tariff for any electricity sent back to the grid.

    Solar generation, consumption and export is tracked and recorded through a smart meter, providing the data for electricity billing.

    Solar systems are most effective when they are well positioned (north-facing is optimal, but not essential) and exposed to enough sunlight without obstruction by shade caused from trees, power lines or other structures.

  • What size solar system is appropriate for my home?

    The appropriate size of a solar system for your home depends on various factors, including your household’s energy consumption, roof size, and the amount of sunlight your home receives. DE Energy Solar’s team can evaluate your energy usage and recommend a system size that is tailored to your specific needs.

  • What is the cost of installing a solar system with DE Energy Solar?

    The cost of installing a solar system with DE Energy Solar varies depending on the size and type of system, as well as other factors such as your location and electrical setup. Our team will provide you with a quote tailored to your specific needs and budget.

    Get a FREE Quote.

  • Do I qualify for solar rebate in QLD?

    If you are the homeowner.

    Any purchase of solar panel system will qualify for the rebate so long as the solar modules and solar inverter approval by the Clean Energy Council and; a CEC accredited installer performs the installation.

  • Does DE Energy Solar offer any government incentives or rebates?

    Yes, we can help you navigate government incentives and rebates that may be available for solar system installations. We will work with you to maximize your savings and ensure you take advantage of any available incentives.

  • What is Solar Feed-In Tariffs (FIT)?

    A feed-in tariff is the rate you are paid for any electricity generated by your rooftop solar system that is fed back into the grid.

    Feed-in tariffs are generally available for residential systems and do not necessarily extend to commercial customers. However, in most cases, commercial customers should be able to negotiate a rate with their electricity retailer.

    Almost all feed-in tariffs offered now are ‘net’ feed-in tariffs. This means that the electricity produced by your solar panels will be used in your home first, and you will only be paid for excess electricity that is exported to the grid.

    Feed-in tariffs differ from state to state and from retailer to retailer. In some states the government regulates a minimum rate, and in other states it is up to you to negotiate a deal with your electricity retailer.

    There is no government-regulated minimum retailer payment in New South Wales or southeast Queensland. It is worth shopping around to find out which electricity retailers offer the best rates for solar customers.

  • What if something goes wrong?

    If you have an issue with any solar product while it is under warranty, you should first contact your solar retailer to have the product replaced or repaired. If you are unable to contact your retailer, contact the manufacturer. Contact details should be provided on the warranty documentation.

    If you are not happy with the response you receive from your solar retailer, you can lodge a complaint with the relevant Fair Trading or Consumer Affairs in your state or territory. They can negotiate on your behalf and arrange mediation where necessary.

  • What should I do if the company I bought my solar system from has gone out of business?

    If your solar retailer has become insolvent and you are unable to contact the manufacturer, you can lodge a complaint with the solar retailer’s administrators. You can send out if a company has become insolvent via the Australian Securities and Investments Commission (ASIC) website or by phoning 1300 300 630.

    Your local Fair Trading or Consumer Affairs may also have information about the appointment of external administrators for insolvent companies. Likewise, if the manufacturer has
    gone into administration, you can lodge a complaint with the company’s administrators. As a consumer, you may become an unsecured creditor. If the external administrator fails to deal with your queries or complaints, you can also lodge a complaint with ASIC on 1300 300 630.

  • How much solar panels cost me and am I REALLY saving Money by going solar?

    COSTS

    The cost of installing a solar system can vary widely and is affected by a range of factors from where you live, the retailer or installer you choose, the warranties available, and the technology and size of your system.

    The major factors which will affect the price of a solar system are:

    1. Government rebates and incentives
    2. Contractor installation costs
    3. Type and number of panels
    4. Type and size of inverter
    5. Type of framing equipment and other system components
    6. Height and accessibility of roof and whether it is tiled or metal or concrete
    7. Any after sales service agreements

    Keeping the above variables in mind, these tables provide an approximate guide on the price range for solar systems in Australia’s major capital cities. Government rebates are included in these figures. Please note that the market costs change quickly so these numbers are illustrative only.

    Estimated prices for residential solar systems

    SYSTEM SIZE ESTIMATED PRICE RANGE
    (Out of Pocket)
    2 kW $2,800 – $5,600
    3 kW $2,900 – $6,950
    4 kW $3,400 – $7,900
    5 kW $3,500 – $9,500
    10 kW $7,600 – $14,100

     

    SAVINGS

    There are numerous factors that affect your suitability for solar and the period it will take for your system to pay for itself.

    The amount of money your household will save on power bills by going solar is affected by several factors, including:

    Your energy consumption and the size of your solar power system – if you use more power than your system can produce, your savings will be reduced. It’s important to choose the correct system for your needs.

    Your feed-in tariff – this is the amount your electricity retailer pays you for any excess power your solar panels generate.

    Your usage patterns – solar panels can only generate electricity while the sun is shining. This means that households that use a lot of power during the day may attract greater savings than those that consume most of their power at night. However, you will still receive a feed-in tariff for any excess electricity you generate during the day.

    Where you live – some areas of Australia receive a lot more sunlight than others, so a solar system in Brisbane will usually generate more power than one in Hobart.

  • How do I choose a solar retailer?

    When choosing a solar or storage retailer and/or installer, it pays to do a little research. The Clean Energy Council recommends choosing an Approved Solar Retailer who has signed on to the Solar Retailer Code of Conduct and only uses designers and installers who are accredited by the Clean Energy Council.

  • What is an Approved Solar Retailer?

    The Clean Energy Council Approved Solar Retailer program is a way for businesses that sell solar and storage to show their commitment to responsible sales and marketing activities and industry best practice.

    Authorised by the Australian Competition and Consumer Commission (ACCC), the program aims to lift the bar higher than the minimum requirements set by government and regulations, and bring about a better standard of service within the solar and storage industry.

    Approved Solar Retailers have committed to complying with the program’s Code of Conduct. If an Approved Solar Retailer fails to comply with the requirements of the Code, the Clean Energy Council may take action against them.

  • What is Clean Energy Council (CEC)?

    The Clean Energy Council is the peak body for the clean energy industry in Australia.

    We are a not-for-profit, membership-based organisation. We represent and work with Australia’s leading renewable energy and energy storage businesses, as well as rooftop solar installers, to further the development of clean energy in Australia.

  • How long does the installation process take with DE Energy Solar?

    The installation process with DE Energy Solar typically takes between one to three days, depending on the size and complexity of the system. Our team will work with you to schedule the installation at a time that is convenient for you.

  • What kind of maintenance is required for a solar system?

    A solar system installed by DE Energy Solar requires minimal maintenance, but it is important to keep the panels clean and free from debris to ensure optimal performance. Our team will provide you with maintenance tips and advice to keep your system running smoothly.

  • Can I sell excess energy back to the grid with a solar system?

    Yes, DE Energy Solar’s solar systems are designed to be grid-tied, which means you can sell any excess energy back to the grid through your utility provider’s net metering program.

  • Are there any restrictions on installing a solar system?

    There may be some restrictions on installing a solar system in certain areas, particularly if you live in a heritage-listed or protected area. Our team will help you navigate any relevant regulations and guidelines to ensure your installation complies with all necessary requirements.

  • How can I schedule a consultation with DE Energy Solar to discuss solar system installation?

    You can schedule a consultation with DE Energy Solar by calling our team at 1800 931 668 or by filling out the FREE quote form on our website. Our team will be happy to answer any questions you may have and provide you with a customized quote for your solar system installation.

  • How long does a solar system last?

    Solar panels typically come with a warranty of 25 years or more, and can last up to 30 years or longer with proper maintenance. Inverter systems typically have a shorter lifespan of 10-15 years, but can be easily replaced when necessary.

  • Will a solar system work during a power outage?

    In most cases, a solar system will not work during a power outage. However, DE Energy Solar can install battery backup systems that allow you to continue using your solar-generated energy during a blackout.

  • Can I finance the cost of a solar system installation with DE Energy Solar?

    Yes, DE Energy Solar offers financing options to help you spread out the cost of your solar system installation over time. Our team can work with you to find a financing plan that meets your needs and budget.

  • Will a solar system increase the value of my home?

    Studies have shown that homes with solar systems installed have a higher resale value than those without. Additionally, a solar system can help reduce your home’s energy bills, making it more attractive to potential buyers.

  • Do I need a north-facing roof to install a solar system?

    While a north-facing roof is generally considered to be the most optimal for solar panel installations in Australia, other orientations can still be effective. DE Energy Solar can evaluate your roof’s orientation and recommend the best solution for your specific location and energy needs.

  • Can I still use electricity from the grid with a solar system?

    Yes, a solar system is designed to work in conjunction with the grid. You will still have access to electricity from the grid when necessary, such as during periods of low sunlight or high energy demand.

  • How does DE Energy Solar ensure the quality of its solar systems and installations?

    DE Energy Solar sources its solar systems from reputable manufacturers (Tier 1 Solar Panels) and follows industry best practices for installation and quality assurance (CEC Approved Solar Retailer). Our team is committed to providing high-quality solar solutions that meet our customers’ needs and exceed their expectations.

DE Energy is a proud New Energy Tech Approved Seller committed to meeting consumer protection standards throughout your customer journey with us.
These standards have been designed by peak consumer and industry bodies to help raise consumer protection across the solar, battery storage and new energy tech industry.

As Approved Sellers, DE Energy is committed to:

  • Providing you with clear, accurate and relevant information to help you make informed choices
  • Encouraging you to be aware of your rights under the law and the New Energy Tech Consumer Code (NETCC)
  • Ensuring that our sales practices are responsible
  • Ensuring that products, systems, services and documentation provided under the NETCC are suitable and fit for purpose
  • Supporting staff training and work processes that ensure that we comply with the law and the NETCC
  • Ensuring that we will be responsive to your needs and taking prompt, appropriate action if you make a complaint.