Solar Rebates Vs. Feed-In Tariffs
The Australian Government’s Renewable Energy Target is driving the growth of solar power and renewable energy in Australia. This means that solar rebates are more important than ever to help you take advantage of this opportunity. However, you may have heard of feed-in tariffs, and are probably wondering how they are different from solar rebates?
In this article, we’ll be talking about the differences between solar rebates and feed-in tariffs by discussing the following points:
- What is a solar rebate?
- What is a feed-in tariff?
- Solar rebates vs. feed-in tariffs
- The pros and cons of each type of solar system
- Which is the best for you: feed-in tariffs or solar rebates
What Is A Solar Rebate?
In the last few years, solar power has become a viable energy system that is both cost-effective and environmentally friendly. As such, many states offer rebates to help incentivise residents who want to go green or make their homes more efficient by installing new panels on their property.
Solar rebates can take the form of money or tax breaks, which is an amazing opportunity for residential customers looking for ways to save money with current technology!
What Is A Feed-In Tariff?
A feed-in tariff is another system that compensates individuals for the amount of renewable energy they generate by offering an incentive to invest in solar panels, wind turbines and other forms of clean electricity generation.
With a feed-in tariff, you can be guaranteed profits from selling excess power generated from your renewable energy sources, such as solar power, back into the grid or supplying your local utility with new sources of power. Similar to solar rebates, feed-in tariffs are an excellent way to reduce your carbon footprint while earning some extra cash!
Solar Rebates vs. Feed-In Tariffs
It can be difficult to understand the difference between solar rebates and feed-in tariffs with all of the jargon that may not make sense at first glance.
To help break it down, solar rebate policies encourage homeowners or businesses to install systems by offering them monthly payments in return for installing renewable energy technology on-site. The rebate is a one-time payment that can cover up to 30% of your solar installation cost!
On the other hand, feed-in tariff programs pay an upfront fee as well as offer ownership rights after meeting certain requirements, such as an agreed-upon price per kilowatt-hour of energy produced.
Nevertheless, both policies are designed with one intention: increasing sustainability by providing homeowners with cleaner electricity at cheaper rates while reducing our reliance on fossil fuels like coal or gas which exacerbate climate change through emissions such as carbon dioxide (CO2) from their use during generation processes.
The Pros And Cons of Solar Rebates And Feed-In Tariffs
There are various pros and cons individually associated with solar rebates and feed-in tariffs. For the pros and cons of solar rebates, some significant examples include the following:
- Saves you money because once solar panels are installed there is no maintenance cost involved with running your home’s electricity.
- Can cover costs related to the actual installation process.
- Help the environment by switching to renewable energy sources and lowering carbon emissions from power plants.
- Not all installation costs are covered.
- Can come with extended wait times for installation.
Meanwhile, some of the pros and cons of feed-in tariffs include the following:
- Encourages environmentally friendly production without giving fossil fuel producers any incentive.
- Can help households save money on energy bills by generating electricity from renewable sources like wind or solar panels.
- Can spur economic activity as well since companies are more likely to invest in manufacturing new equipment such as rooftop solar system, especially if a country has an established policy for encouraging clean energy production with incentives that may include tax credits and cash payments per kilowatt hour produced up front.
- Criticised for their lack of scalability. Critics claim that as the number of solar panels increases, it becomes more difficult to provide a fixed amount of subsidies per unit generated because they must be divided out among an increasing pool.
- Can cause an imbalance between production and consumption which will result in high costs because some power plants cannot store energy.
Which Is The Best For You: Feed-In Tariffs Or Solar Rebates?
Which is best for you: Feed-In Tariffs or Solar Rebates? While both of these policies require a one-time expense upfront, they each offer their own perks that might make them preferable.
For example, with feed-in tariffs, the price per kWh will be higher than it would be through solar rebates but then customers are able to resell excess power back into the grid and receive money from those sales on top of their original investment. That makes this option better if your focus is primarily revenue generation instead of saving energy costs over time by installing solar panels yourself which may also take some initial funding as well.
Solar rebates on the other hand can be a good alternative if you’re not serious about your commitment to going green and just want some relief from high energy bills. Solar rebates are available to help you get the equipment at a lower cost and with zero upfront installation fees!
Choosing the best option for you is all about weighing up the pros and cons of each type of service so that you can make an informed decision when it comes to long-term eco-friendly investments such as solar panel installation.
If you are interested in making your home more environmentally friendly and saving money on electricity, one of the most important decisions to make is whether to go with a solar rebate or feed-in tariff. If you want to learn more about the differences between solar rebates and feed-in tariffs and which one is best for you, we can help!
Please contact us today at GCR Electrical Systems on (07) 4120 7004 if you have any questions about solar in Hervey Bay, or leave an enquiry if you would like more information about our solar installation services.