In short, if you're considering solar you need to know everything about Feed-In Tariffs. Here's why: If you're considering installing solar panels on your home or business in New Zealand, you've probably heard the term "feed-in tariff" (FiT). But what exactly is it, and how can it help you get the most out of your solar investment?
What is a Feed-In Tariff?
A feed-in tariff (FiT) is the rate your electricity retailer pays you for the surplus solar electricity your system exports to the grid. When your solar panels produce more electricity than your home uses, the excess is sent to the electricity grid. Your retailer then credits your account at the FiT rate for every kilowatt-hour (kWh) exported.
How Feed-In Tariff Rates Are Set
FiT rates vary by state and territory, and by electricity retailer. In most states, the rate is not regulated — retailers set their own rates to compete for your business. Rates typically range from 5–20 cents per kWh depending on location and retailer.
How to Maximise Your Feed-In Tariff Earnings
Shift Your Usage Pattern
The best strategy is to use as much of your own solar power as possible during the day (self-consumption) and minimise your exports. Running appliances like dishwashers, washing machines, and dryers during peak solar hours (roughly 10am–3pm) maximises self-consumption, which is more valuable than exporting at the FiT rate.
Add a Battery
A home battery system stores your surplus solar power for use at night, reducing how much grid power you buy in the evenings. While FiT rates have declined over the years, the value of self-consumption has increased as electricity prices rise.
Compare Retailers
Different retailers offer different FiT rates. It's worth regularly reviewing your plan and switching if a better offer is available. Look for retailers offering both a competitive FiT and a low usage rate.
Virtual Power Plants (VPPs)
Some utilities offer Virtual Power Plant programs where your battery system is connected to the grid and can earn additional income by responding to grid events. This is an emerging but increasingly worthwhile addition to a solar and battery setup.
Get Expert Advice
At EFS Solar, we help you choose the right system size and configuration to maximise your self-consumption and feed-in earnings. Get in touch today for a personalised recommendation.