Solar owners in Western Australia generally get a very low feed-in tariff these days, and it’s about to get a smidge lower. So, is rooftop solar power still worth it in WA?
Back in 2010 when the solar industry was still finding its feet in Western Australia, the State Government introduced a feed-in tariff scheme to encourage electricity customers to install solar panels. Those who installed systems and signed up for the feed-in tariff between 1 August 2010 and 30 June 2011 received a whopping 40 cents per kWh exported to the grid.
The feed-in rate was halved to 20c per kWh for signups between 1 July 2011 and 1 August 2011. And then the party was over; but not for those registered in the scheme as the rates were locked in for a decade as long as systems remained with eligibility guidelines.
The incentive did what was intended. In 2009, only 11,157 systems were installed that year. In 2010, the number of installations jumped to 22,293; and in 2011 there were 51,667 installs. According to Synergy, more than 75,000 customers participated and over $430 million was paid out.
After that initiative, the Renewable Energy Buyback Scheme (REBS) was introduced, which was paying 7.135c per kilowatt hour just before it ended in late 2020. Then the Distributed Energy Buyback Scheme (DEBS) scheme came into play, which continues today.
For 2023/24, households in Perth and WA’s south-west (Synergy customers) receive 2.25 cents per kilowatt-hour for solar energy exports between 9pm and 3pm, and 10c/kWh for exports between 3pm and 9pm. Regional (Horizon Power) rates vary, but they were generally 3c/kWh 9pm-3pm and 10c/kWh 3pm to 9pm in significant regional centres.
2024/25 Feed-in Tariff Rates
As with regulated electricity prices, the DEBS buyback rates are reviewed each year by Western Australia’s State Government. In 2024/25, here’s what’s happening for Synergy customers:
- Electricity exported between 3pm to 9pm: 10 cents per kilowatt-hour (kWh);
- Electricity exported between 9pm and 3pm: 2 cents per kilowatt-hour (kWh).
For most Horizon Power customers, the rates will remain the same as 2023/24.
Is It Still Worth Going Solar In WA?
If you have a suitable rooftop, yes.
Western Australia’s feed-in tariff rates have been particularly crappy for some years. But the solar juggernaut rumbles on – 38,691 systems were installed in 2022, and around 35,000 in 2023. More than 500,000 systems in total have been installed in WA to date.
There’s good reasons passion for rooftop PV, particularly in Perth, continues. First, intense competition among solar installers keeps prices in check. Second, Western Australia enjoys high levels of sunshine.
Even with such a low feed-in tariff rate, a good quality 6.6kW solar system1 installed in Perth can achieve simple payback in around 7 years. But this estimate is based on the SolarQuotes solar calculator’s default system cost of $6,6002 and just 11% self-consumption of the electricity generated. As across the rest of Australia nowadays, self-consumption is the name of the game – boost that and payback accelerates significantly.
Footnotes
- To be eligible for DEBS, a system cannot exceed a solar panel capacity of 6.6kW and an inverter capacity of 5kW. ↩
- SQ’s Solar Price Index for WA indicates an average 6.6kW system cost in May of only $5,146 – but this is for all system quality types. ↩
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Plus in some states from the first of July 2025 you will be fined if you export beyond your quota – very green indeed! Believed it to be fake news when I saw an EV owner holding up a sign saying “Charge EV for free!”.
Hi Dominic,
Fined for exporting? Do you have a link to go with that assertion please?
Not ‘fined’, but charged.. yes.
https://www.theguardian.com/australia-news/article/2024/may/17/energy-companies-charging-nsw-solar-panel-owners-for-exporting-power-criticised-by-lobby-group#:~:text=This%20will%20include%20a%20charge,hit%20above%20a%20free%20threshold.&text=The%20owners%20could%20also%20see,time%20of%204pm%20to%209pm.
Hi LGH,
Sadly the vast bulk of media and even solar oriented websites can’t resist a bit of “sun tax!” clickbait.
It might not be ideal but the major impact is going to be moral injury more than economic from what we can see.
https://www.solarquotes.com.au/tools/solar_tax/
(If the authorities crank these costs up too much they’ll soon find the dildo of consequences doesn’t arrive lubed)
Anthony: Have asked the more knowledgeable Whirlpool forum, topic “Economics of Climate Change” where I read it as I have forgotten. Private PV is certainly a pest to the energy industry with its negative prices areound lunch time.
Link:
https://www.smh.com.au/environment/sustainability/solar-panel-owners-slugged-by-ausgrid-for-generating-too-much-power-20240515-p5jdtx.html
Effectively a fine for exporting too much?
Hi Henry,
Sadly the vast bulk of media and even solar oriented websites can’t resist a bit of “sun tax!” clickbait.
It might not be ideal but the major impact is going to be moral injury more than economic from what we can see.
https://www.solarquotes.com.au/tools/solar_tax/
(If the authorities crank these costs up too much they’ll soon find the dildo of consequences doesn’t arrive lubed)
I’m guessing people still on the older plan (example 2020 install at 7c per kWh) will still be on that? And will these changes only be for new installs?
It’s not a bad thing. Low feed in tariffs are an incentive to install a battery system, which is a win for everybody overall.
True.
Base onn the midday saver tariff a sufficient battery saves all tariffs down to 8c/kWh , whereas solar PV only saves this last 8c/ kWh.
A battery can give a better return than solar PV, and solar PV id not even necessary since the battery can be charged from the grid at 8c/kWh.
Western Australia and sola powered go hand in hand,it just makes sense both economical and environmental.
It’s a no brainer really.
As much as 50 % + off your Power bills and a feeding back into the grid.
The rebates should be more as solar system owners are at the end of the day helping to reduce reliability on the power grid plus infrastructure requirements.
It should be compulsory that all house holds and commercial properties have the minimum requirements.
Government should assist those that need financial help ,via using the rebate system to pay fir costs of units.
If all house holds and commercial properties had sola,then we would achieve a neutral foot print be the end of 2025.
Asking too much,I think not .The alternatives will take much longer,by which time we will all be history.
Global warming is already out of control.
Agreed in that all new builds at least should have to install some form of PV system. The trouble is return on investment is the sticking point for most people, that and finding the funds to do it in first instance. If like so many other requirements for new builds and extensive reworks included PV system then perhaps there would be faster update as the financial party is over.
We, a couple years back moved from a 1.5kw to a 6.6Kw – now wish should have stepped up to a 9 or 13kw TBH.
But we are on track to payback our outlay in around 4-5 yrs without making to many changes to the way we use energy. If was doing today I’m not sure the longer term feeding are encouraging enough to consider, unless battery prices come significantly down to point where payback time is at least, hopefully better, than the warranty period
Are the solar farms being paid the same per kWh as the mums & dads who have also invested in solar?. I suspect we are subsidizing them.
Hi Peter,
Sun farms vary. Those under 5 megawatt are like Mum’n Dad systems, unscheduled generators on the NEM, and don’t need batteries to firm them (ie make them more predictable and dispatchable)
Many have power purchase agreements with different electricity consumers, so for example big corporates like Coles or Westfield might buy all the solar output for a given rate under a contract. The ACT government has done this & makes them the cheapest electricity in the country for consumers.
Others will bid into the spot market and usually they undercut everything else because the fuel is free. Prices can often go negative around midday because large thermal plants can’t shut down quickly but need to be kept hot and running to be ready to make a few dollars in the evening peak.
Solar on your roof at home is primarily about using power behind the meter. Excess solar isn’t a bug, it’s a feature. If you have more solar than you can use, buy an EV or hot water service to soak it up.