Energy Industry News Renewable Energy

IPART’s solar feed-in tariff guide informs customers of extra power

Eliza Sayon Apr 28, 2023

2 min read

IPART’s recently published solar feed-in tariff guide for customers in 2023-24 is informing customers that they should expect to receive 7.7 to 9.4 c/kWh from their electricity retailer for the solar exports they feed into the grid.

Tribunal chair Carmel Donnelly said that the value of solar is based on wholesale prices at the times that solar is exported to the grid.

“Wholesale prices have increased significantly over the last year, mainly due to the war in Ukraine which has led to higher gas and coal prices, and disruptions in several large coal-fired power plants,” Ms Donnelly said.

“IPART’s feed-in tariff benchmark is up from around 5 cents this time last year.”

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Ms Donnelly said that most customers get the best value from their solar panels by using electricity when their solar panels are generating during the day. This allows customers to reduce how much electricity they need to buy from retailers.

“Solar customers can power their heaters, air conditioners, electric vehicle and pool pumps with their solar panels if they time it right.” Ms Donnelly said.

Retailers’ prices are higher than the solar feed-in tariff rates because retail prices include network costs and environmental obligations.

They must also recover the high costs of wholesale electricity when solar is not generating. These can be much higher than the wholesale costs in the middle of the day when solar is helping to power the grid.

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IPART has also published a fact sheet showing the solar feed-in tariffs currently being offered by retailers.

“We found that some retailers offer solar feed-in prices above IPART’s benchmark, but with conditions,” Ms Donnelly said.

“Some retailers pay a lower feed-in tariff rate after export thresholds have been reached. Other deals are only available if the customer has bought their solar panels through that retailer. Customers should consider all aspects of a retailer’s offer including usage and fixed charges. The offer with the highest feed-in tariff may not be the best deal overall.”

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.