Net Metering and Feed-In Tariffs
A lot has changed since solar panels were first introduced in Australia as a way to generate electricity. In the early days, people mainly installed solar panels to save money on their electricity bills. These days, things are a bit different. With the cost of solar panels dropping significantly in recent years, more and more people are choosing to go solar not just for financial savings, but also for environmental reasons. So, the question is, do you still pay for electricity once your solar panels are installed?
To understand your electricity usage and bills in Australia, you first need to understand net metering and feed-in tariffs. Essentially, these are both ways to generate income from your solar system.
Net metering is a system where you can sell any extra power that your solar panels generate back to the grid. This is usually done at a rate of around $0.25 per kWh, which is the same price that you pay for electricity from the grid.
Feed-in tariffs, on the other hand, are a similar subsidy offered by state governments to encourage people to install solar panels. Although these tariffs vary from state to state, they typically range from $0.05-$0.15 per kWh generated by your solar panels.
In most cases, if you have a net metering agreement with your energy retailer, you will only be charged for the ‘net’ amount of electricity that you use while feed-in tariffs are applied to the ‘gross’ amount of electricity generated by your system. This means that you will receive a credit for any excess electricity that your system generates, which can offset the cost of any electricity that you consume from the grid.
In summary, if you have solar panels installed on your home or business, you may still benefit from these two financial incentives. However, you will likely still be charged for the electricity that you consume from the grid. The amount that you are charged will depend on a number of factors, including the type of tariff that you are on and the policies of your energy retailer.
Determining the Size of Your System and Home Energy Use
Do you still pay for electricity with solar panels? Two more important factors that will decide the answer are the size of your system and your home energy usage. HomeEnergyClub mentioned the importance of choosing the right plans and looking for different rates for renewable energy, further emphasizing the benefits of transitioning to solar power.
The size of your solar panel system will determine the amount of electricity that you generate from the sun. If your system can generate more electricity than you use, then you may be able to sell this excess back to the grid. The amount that you are paid for this excess electricity will depend on the policies of your energy retailer. Either way, it detracts from the amount that you pay on your energy bill.
Your home energy usage will also play a role in deciding whether you still pay for electricity in your monthly energy bills with solar. If you consume more electricity than what your solar panels can generate, then you will need to purchase this additional electricity from the grid. The cost of this additional electricity will again depend on the type of tariff that you are on and the policies of your energy supplier. If your energy consumption is low, your solar panels might cover everything you need; this is why it’s important to consider your energy usage when installing panels.
In summary, whether you pay for electricity with solar panels installed will depend on a number of different factors. These include the type of tariff that you’re on, the size of the system, and your energy usage!

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