Ask Dr. Solar – Net Feed In Tariffs

Dr. Solar answers a question about how net feed in tariffs work in relation to grid connect solar power systems

Andrew M asks:

“Say you have a 2KW (grid connect solar power) system and the price off electricity is 20c/KWh and the Feed in Tariff is 60c/KWh. Now lets say on an average day you achieve 4KWh of generation during the day with no appliances running at all, but at night you use 4KWh of electricity.

Does that mean that you get payed for 4 X 60c for the day and deduct 4 x 20c for the night leaving you ahead at 240cents – 80cents = $1.60 per day? Or that you have a net out output of zero for the day so therefore you don’t realise the feed in tariff but don’t pay for the electricity either.”

Dr. Solar:

Hi Andrew, your first scenario is correct… if there is a net feed in tariff and you can avoid using any power during the day and then use the same amount of power at night – as outlined in your example, then you are dollar-wise way ahead – in your sample $1.60 per day.

It will be hard for anyone not to use any power during the day eg fridge, stand by appliances etc.. and that’s why we as the renewable industry push so hard for the gross feed in tariff – as under this scenario you will get the 240 cents, even if you use the 4kW during the day and for the 4kW you use you would only pay the 80 cents. Your 2nd scenario is applicable in places like NSW who still have not even implemented a net feed in tariff.

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