Energy Australia cuts solar feed-in tariffs
Customers in 3 states won't get as bright a deal as they're used to.
Australian energy retailer Energy Australia has just announced it will be reducing the solar feed-in tariffs it pays to customers in three states, among a slew of other electricity and gas rate changes. According to the announcement on its website, this was part of a "difficult decision to adjust [its] prices with inflation".
Feed-in tariffs are small payments made to customers with solar panel systems which generate excess electricity and then feed it back into the power grid. Residents are rewarded with a particular number of cents per kWh that depends upon their energy plan as well as what state they live in.
Energy Australia's new feed-in rates show a drop in price for three states and the addition of the Australian Capital Territory to the scheme.
Of those that lost out, New South Wales dropped 2c to 12.5 c/kWh, South Australia 3.5c to 11.5 c/kWh and Queensland a whopping 4.6c to 11.5 c/kWh.
At the same time, Victoria has a new "time of use" feed-in tariff which splits the day up into peak, off-peak and shoulder periods, providing a higher tariff during peak times. It is expected that most customers will remain on the flat rate of 12c/kWh already set for Victoria.
Compare rates (not just solar rates) for a better deal
With major energy retailers like Energy Australia adjusting their tariffs, it's as important as ever to compare the solar feed-in tariffs provided on different energy plans. While they may seem small or insignificant, an extra 5c/kWh can make a huge difference over the course of a couple of years. Finding a provider that will reward you for your energy production and management is crucial.
That said, feed-in tariffs are not the be-all and end-all of energy plans. You should always compare plans based on usage and supply rates for the electricity you don't produce yourself to keep your annual power bill low. If your current provider has a sudden drop in the feed-in tariffs it provides, it might be time to shop around for a better deal.