Feed-in Tariffs (FiTs): FiTs are payments made by electricity retailers to solar panel system owners for the excess electricity generated by their system and fed back into the grid. The rate of FiTs varies depending on the state or territory in Australia, and it is often higher during the daytime when electricity demand is higher. FiTs are typically paid as a credit on the electricity bill.

April 16, 2024by Luke0

FiTs were introduced as a way to incentivize the uptake of renewable energy sources, such as Solar power, and to encourage individuals to invest in Solar panel systems. By receiving payments for the excess electricity generated, Solar panel system owners can offset their electricity costs and potentially even earn money from their system.

FiTs have been successful in promoting the adoption of Solar power in Australia, with many households and businesses taking advantage of the incentives to install Solar panel systems. This has helped reduce greenhouse gas emissions and reliance on fossil fuels for electricity generation.

However, FiTs have also faced criticism for potentially increasing electricity prices for non-Solar customers, as the cost of the scheme is often passed on to all electricity consumers. Additionally, the rates of FiTs have been gradually decreasing in recent years, making it less financially attractive for new Solar panel system owners.

Overall, FiTs have played an important role in promoting renewable energy in Australia, but there is ongoing debate about how best to structure and fund these incentives to ensure a fair and sustainable transition to clean energy.

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