The best feed-in tariff in Sydney is 22 cents per kWh and it is being provided by Mojo Energy on their G’Day Sunshine energy plan for electricity exported to the grid, up to the first 5kWh per day.
This discussion of feed-in tariffs in Sydney should interest you if you are resident in Sydney, and you want your solar system to give you the best possible electricity savings.
In this post, we’ll explore the feed-in tariffs in Sydney to determine the energy retailers with the highest rates. We’ll also look at whether feed-in tariffs are worth it in Sydney.
Let’s get started!
Who gives the best solar feed-in tariff rate in Sydney?
At this time, Mojo Energy gives the best solar feed-in tariff rate in Sydney – 40 cents per kWh up to 300kW per quarter.
Following Mojo Energy is Origin Energy which offers 20 c/kWh. The top 5 is completed by Red Energy, Discover Energy, and AGL, who give 18 c/kWh, 16 c/kWh, and 12 c/kWh, respectively.
A high feed-in tariff means more money for the excess electricity from your solar system. However, a high FiT rate is not the only thing to consider when looking for energy plans. There are other important considerations, such as usage rate and daily supply rate.
The usage rate is how much the retailer charges for each kilowatt-hour of electricity used. Going solar does not mean that the grid’ll not supply you with energy. Your solar energy production is highest in the sun’s peak hours. When there’s no sunlight and your solar system does not produce electricity, or when the electricity produced is not enough, you’ll need power from the grid.
Thus, if because of a high FiT rate, you choose a retailer with a high usage rate, you’ll have large electricity bills that outstrip whatever savings you get from the high FiT.
The same applies to the supply rate, which is the amount that a retailer charges for supplying electricity to your home. An increased supply rate means that you’ll have large energy bills, which erode savings from a high FiT.
Is there a minimum feed-in tariff in Sydney?
There is no minimum feed-in tariff rate in Sydney, but any rate lower than 4.6 cents per kWh is not good.
Unlike the state of Victoria, which has a minimum feed-in tariff of 6.7 cents per kWh, New South Wales has not set a minimum feed-in tariff. Thus, there is no minimum feed-in tariff for Sydney.
However, the Independent Pricing and Regulatory Tribunal of New South Wales (IPART) sets a benchmark feed-in tariff rate for the state each year. For 2021/2022, the set rate is 4.6 – 5.5 cents per kWh.
This benchmark rate is just a guide, so retailers are not required to follow it. Some energy retailers in Sydney offer less than 4.6 cents per kWh, while others provide more than 5.5 cents per kWh.
However, this benchmark is set by a pricing and regulatory body in the state, so you can use it to decide what a reasonable feed-in tariff for Sydney is. That said, an excellent feed-in tariff in Sydney should not be less than 4.6 cents per kWh. While any FiT rate that is over 5.5 cents per KWh is very good.
Solar feed-in tariff comparison in Sydney?
When considering energy retailers and/ or plans, it is vital to check for high feed-in tariffs so that you can get as much as possible for the excess electricity that your solar system produces.
The different energy retailers serving Sydney offer different FiT rates. In fact, some retailers have different electricity plans, with each program offering a different feed-in tariff. As such, for many retailers, there’s a minimum and maximum feed-in tariff.
The feed-in tariffs in Sydney are:
|Minimum feed-in tariff
|Maximum feed-in tariff
|Bright Spark Energy
|Electricity In a Box
|Future X Power
|Locality Planning Energy
From the comparison table, the best feed-in tariffs are:
Mojo Energy – 22 c/kWh
With its G’Day Sunshine energy plan, Mojo Energy will pay you 22 cents per kWh of electricity exported.
But for the insanely high rate of Social Energy, this 22 c/kWh FiT of Mojo Energy will be the highest rate in Sydney. Unlike Social Energy, Mojo Energy does not require buying batteries to get its high FiT rate.
However, the high 22 c/kWh FiT is capped at 5kWh per day. After earning high on the 5kWh exported, the FiT drops to 7.5 c/kWh.
Origin Energy – 20 c/kWh
Origin Energy also offers a high feed-in tariff of 20 cents per kWh. This is available on the Solar Boost Plus Plan.
However, the high 20 c/kWh FiT is for only solar systems that are under 7kW. For systems over 7kW, the FiT rate is 14 c/kWh.
Also, the 20 c/kWh or 14 c/kWh rates apply to only customers buying a new Origin solar system, and the rates are available for only 24 months. After this period, your FiT will revert to either the standard plan rate of 5 c/kWh or the Solar Boost plan rate of 10 c/kWh.
Red Energy – 18 c/kWh
With its offer of 18 cents per kWh of exported electricity, Red Energy is another energy retailer with high feed-in tariffs in Sydney.
However, its high 18 c/kWh FiT rate is capped at 5kW per day. After exporting the first 5kW in a day, your FiT is cut by three, and you’ll get only 6 cents for every other kilowatt-hour of electricity that you export.
Discover Energy – 16 c/kWh
Discover Energy completes the top five with its offer of 16 cents per kWh of exported electricity.
However, the high rate is only for the first 300 kWh exported in a quarter. For the next 300 kWh exported in the quarter, the Fit is 10 c/ kWh. It reduces further to 4 c/kWh for any other kilowatt-hour of electricity you export in the quarter.
AGL – 12 c/kWh
AGL (Australian Gas Light Company) completes the top five with its offer of 12 cents per kWh for electricity exported to the grid.
However, to get this relatively high feed-in tariff, the size of your solar system must be up to 10kW. Also, the high FiT is offered to only customers on the AGL Solar Savers plans. For those on other electricity plans, the FiT is only 5 cents per kWh.
A good thing about AGL’s high 12 c/kWh FiT is that it is not capped. You do not get the high FiT for only the first “x” kWh exported per day and then get a reduced rate for any other electricity exported. Rather, it is the going rate for whatever amount of power you export anyday.
Are feed-in tariffs in Sydney worth it?
Retailers are paying less and less for exported energy, so it may be best to use the energy produced by your solar system instead of exporting it to the grid.
However, there are some very good feed-in tariffs in Sydney. With IPART setting a benchmark of 4.6 – 5.5 c/kWh for Sydney, the 22 c/kWh and 20 c/kWh offered by Mojo Energy and Origin Energy respectively, are very high.
That said, if you export a lot of excess electricity to the grid and receive only a tiny amount from the grid, the feed-in tariff may be worth it. This is because you just may earn a tidy sum from feed-in tariffs that will cover what you pay for electricity supplied by the grid. However, if you do not export much to the grid, feed-in tariffs may not be worth it.
Mojo Energy offers the best feed-in tariff in Sydney. Its offer of 22 c/kWh is one of the highest you’ll find anywhere. The 20 c/kWh offer of Origin Energy, the 18 c/kWh offer of Red Energy, and the 16 c/kWh of Discover Energy are also very high.
However, when looking for the best energy plans, you should not look at only high feed-in tariffs. It’s also important to consider usage rate and daily energy supply rate so that you’ll not have high power bills that’ll negate your FiT savings.
Our Guides to Solar Rebates, Tariffs and More
We have a series of unique guides to solar, solar finance, batteries and more, if you are looking to do more in-depth research into solar finance check the below:
1. What Are Solar STC’s?
In this regard, the Australian government has provided incentives under the Solar Credit Program to encourage the installation of solar power systems. STCs or Small-scale Technology Certificates are incentives provided to small-scale energy generators. The most common example is the residential facilities.
2. How To Claim STCs
You can claim small-scale technology certificates (STCs) by assigning them at the point of sale to a registered agent like a retailer or solar installer. Each STC claim is unique to an installation. However, you can make more than one STC claim if you use different addresses for each installation.
State-Based solar incentives in Australia offer low-interest loans, interest-free loans, free solar system installation, or free battery installation. The incentives are given depending on your state location. However, you receive solar incentives only if you are eligible.
There are many incentives that business owners in Australia with solar power can enjoy. Some of them include Small-scale Technology Certificates (STCs), Feed-in Tariffs, Retailer Energy Productivity Scheme (REPS), and more. These incentives promote the adoption of solar by lowering the installation costs.
Are you interested in solar? By clicking below, you can use our smart solar calculator to find out just how much you could save with solar, what rebate you are eligible for, and the impact you will have on the environment.
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