Feed-in Tariffs (FiTs): FiTs are a payment made by electricity retailers to solar system owners for the excess electricity generated by their solar panels and fed back into the grid. The rate of the FiT varies between states and territories, and it is usually higher than the retail electricity rate. While FiTs don’t directly reduce the upfront cost of installing solar panels, they can provide ongoing financial benefits by offsetting electricity bills.

FiTs are designed to incentivize the adoption of Solar energy and promote renewable energy generation. They provide a way for Solar system owners to earn money from their excess electricity production, making Solar energy more financially attractive for homeowners and businesses.

In addition to the financial benefits, FiTs also help to reduce greenhouse gas emissions and promote environmental sustainability by encouraging the use of clean, renewable energy sources. By rewarding Solar system owners for generating electricity from Solar panels, FiTs help to reduce reliance on fossil fuels and contribute to a more sustainable energy future.

Overall, FiTs play an important role in the transition to a clean energy economy and can help to accelerate the adoption of Solar energy technologies. By providing a financial incentive for Solar system owners to generate their own electricity, FiTs help to reduce electricity costs, lower carbon emissions, and promote renewable energy generation.