Yesterday the NSW Government surprised renewable energy fans by switching the new feed in tariff from a net to a gross tariff.
This means that owners of solar systems in NSW will now get 60c per kwh for all the electricity they generate.
Previously you were only going to get paid for the power exported to the grid (i.e not the power you used in your house)
This makes a huge difference to the economics of buying a solar power system in NSW.
Plugging the numbers into my solar calculator shows that a good quality 1.5kW system will pay for itself in just over 4 years.
In fact you’ll be getting around $120 per month of income from the outset. And the benefits will only go up as electricity prices rise.
Even if you take out a $7000 loan at 7% interest the system would be cash flow positive from the outset. See for yourself here.
That’s a better return, and much lower risk than most other investments these days.
Have a play with our solar calculators to see if it makes financial sense for you. Just put ‘Feed In Tariff %’ as 100% and ‘Feed In Tariff Price’ as 60c and the calculator will work out the payback and monthly savings.
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The NSW Gross Feed in Tariff is valid for 5 years at 60c/kWhr
Your Solar Savings Calculator needs to have the ability to set the GFT period in order to show the actual savings a Solar system will generate. I expect that the kWhr paid after the 60 cents GFT expires will drop to the ‘standard’ rate
Hi Mike,
Very good point – I’ll get the coder on to it ASAP and let you know when it’s done!
Finn
Calc updated with FIT period – Give it a go!