Feed-in Tariffs (FiTs) are declining everywhere. More importantly, we should probably brace for the fact that they’re about to drop further as we enter a high-supply, low-demand spring season.
This could even lead to negative FiTs, where you have to pay to export energy. Generally, a negative FiT period occurs when the grid is so well supplied that exporters (including big power plants as well as solar homes) are penalised for exporting energy. The good news is these negative tariffs are typically only a few cents per kWh.
Should you switch providers?
If you export more power than you use, finding a higher FiT could save you money. But if you use most of your solar energy at home, it’s better to focus on getting the best usage rate instead.
As electric vehicle uptake increases and the “electrify everything” movement progresses, there’ll be more demand for your solar exports, and we expect this to eventually lead to a rise in feed-in tariffs.
Whilst we believe FiTs will likely trend down as more solar panels are installed, the increased demand from electric vehicles and other factors like electrification may eventually push them up.
What to do to get the most from your solar:
- Maximize usage: Adjust home systems to use more solar power during the day.
- Electrify your home: Consider switching to electric appliances, like a heat pump for your hot water, and vehicles.
- Explore solar curtailment: Check if your inverter can reduce exports during negative FiTs.
- Invest in a home battery: Store excess solar energy for use when it’s more valuable, especially during peak demand.
Why UNIfied?
At UNIfied, we are here to ensure your electrification journey is as efficient and seamless as possible. Find out how you can save more with upgrading to the heat pump hot water system or installing a battery!
Contact UNIfied today or call 1300 817 847 to achieve greater savings in these precarious times, and start your journey of clean energy living!
