When Does the Solar Bonus Scheme (60 cent feed in tariff) End & What Should I Do?
When does the Solar Bonus Scheme (60c and 20c feed in tariff) end?
If you had your solar system installed during the Solar Bonus Scheme then you will be receiving either sixty cents or twenty cents per kilowatt for all the power your system produces. This scheme will cease at the end of 2016.
What happens when the scheme ends?
If you are on the scheme then your solar system is gross metered. This means that all the power you produce is metered and then you are paid your 60c or 20c per kilowatt hour by your electricity retailer for all the power your system produces . At the end of 2016 your retailer will no longer be required to pay anything for the power you produce. This means that you may get zero payment for your solar system's electricity. Some retailers may voluntarily pay something for your power, but this is expected to be around five to six cents per kilowatt hour - effectively meaning you will get no real benefit from your system.
How can I continue to benefit from my solar system?
To continue to benefit from your solar system, you need to change the metering from gross metering to nett metering. Nett metering (which is how all new systems are metered) allows you to use the power your system produces instead of feeding it all back to the grid as you are now doing. Only power you don't use will be fed back to the grid and you will normally be paid a small amount for this power. By using your own power, you can reduce how much power you need to buy from the grid, thus continuing to save.
Ideally you should have your metering changed as close to the end of the scheme as possible. However, it is likely that there will be long delays in getting this done due to the very large number of people requiring this at the same time. You could do it some months earlier - but that means you would lose your feed in tariff early.
An alternative you may want to consider is installing an additional system well before the end of the scheme. This will come with nett metering, meaning it will then be easy and quick to switch your gross system over when the time comes. There are other good reasons to consider adding to your system...
Why consider adding to your solar system before the end of the scheme?
When you install an additional system you will have a nett meter installed with it - meaning you won't have to pay separately for your nett meter and it will be quick and easy to switch your gross system over at the right time - without long delays which will cost you money. Other good reasons to consider an additional system are -
The feed in tariff has in effect increased the size of your system by multiplying the tariff. When it ends your system will greatly shrink in its ability to offset your electricity bills and will likely be too small for your needs. (For example; a 1.5kw system has been the equivalent of around a 4.5kw thanks to the feed in tariff. When it ends it will go back to being a 1.5kw system!)
Solar technology has progressed significantly since the time of your original installation. There are now excellent options available that weren't back then - including installing systems that are battery ready or using micro inverters that enable you to install just a few panels if your roof space (or budget) is limited - and allow you to easily add on more panels later. See -What about microinverters?
While quality has gone up, prices of solar equipment has come down greatly. You will likely find you can install a system for much less than you did originally.
When would be the best time to add an additonal system?
The closer we get to the end of the solar bonus scheme the busier things will get in the solar industry. The busier things get, the more prices go up and the delays in getting things installed will increase. So it would be wise to get your upgrade installed as soon as possible.
To get a quote on an additional system, or to find out more about your options - contact Guy, The Solar Power Pro - Wollongong's solar power professional. See - Contact