{"id":2659,"date":"2013-07-03T11:12:36","date_gmt":"2013-07-03T01:42:36","guid":{"rendered":"http:\/\/www.solarquotes.com.au\/blog\/?p=2659"},"modified":"2024-01-30T19:59:44","modified_gmt":"2024-01-30T10:29:44","slug":"south-australia-feed-in-tariff-ends-in-september-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.solarquotes.com.au\/blog\/south-australia-feed-in-tariff-ends-in-september-what-you-need-to-know\/","title":{"rendered":"South Australia Feed In Tariff Ends In September. What you need to know."},"content":{"rendered":"

If you’ve opened any South Australian newspapers recently you’ve probably seen adverts from solar power installers screaming about the “IMMINENT REDUCTION IN THE SOUTH AUSTRALIA FEED IN TARIFF!!!”.<\/p>\n

Regular readers of this blog will know that I’m not one to bombard you with pushy sales spiel, or use impending rebate cuts to pressure anyone into buying solar.<\/p>\n

But what I will do is calmly go through the facts about the looming SA Feed In tariff reduction, and crunch a few numbers, so you can decide if you want to get in on the SA solar action before the 30 September 2013 deadline that a lot of solar companies are getting all worked up about.<\/p>\n

First let’s look at the facts (some of which you can get from the horse’s mouth here).<\/p>\n

The Facts<\/strong><\/h2>\n

1) The value of the current SA FiT:<\/strong><\/h3>\n

The current Feed In Tariff in SA<\/a> is:<\/p>\n

16c per kWh + 9.8c per kWh = 25.8c per kWh<\/strong> total<\/p>\n

The reason I break it down into two parts is this:<\/p>\n

The 16c is guaranteed until\u00a0\u00a030 September 2016.<\/p>\n

The 9.8c is only guaranteed until 31 December 2013. The pollies haven’t decided what it will change to in 2014. It will probably change to about 10c, giving you 26c per kWh total, but that’s just my guess. Worst case would obviously be zero cents, giving you 16c per kWh total from 2014.<\/p>\n

2) The deadline for getting the current FiT<\/strong><\/h3>\n

To be eligible to get the 25.8c Feed In Tariff you need to “get permission to connect your solar system to the grid” before 30 September 2013, and you need to get the system installed by Jan 28th 2014.<\/strong><\/em><\/p>\n

The only legitimate way you can get permission to connect to the grid is to place a firm order for a solar system, so the installer can apply to SA Power Networks (formerly ETSA) for permission to connect.<\/p>\n

At the moment it takes a couple of days for them to get this permission – but \u00a0my experience in all the other states tells me that as the end of September draws near there will be a huge rush on and it may take weeks to get permission.<\/strong><\/p>\n

So if you want to buy a solar system to get the current FiT my advice is don’t leave it any later than early September to place your order.<\/strong><\/p>\n

But that begs the obvious question:<\/p>\n

3) Is it worth buying a solar system right now to get the current FiT?<\/strong><\/h3>\n

Lets crunch some numbers so you can make your own mind up. Going to my solar payback calculator<\/a>, we can run 2 scenarios:<\/p>\n

a) Scenario 1: Buying a good quality 3kW solar solar system with the current Feed In Tariff<\/strong><\/p>\n

Key Assumptions:<\/p>\n

26c per kWh FiT for 3 years, after which you get 10c per kWh<\/p>\n

60% of energy is exported<\/p>\n

Cost of 3kW system is $5,800 out of pocket.<\/p>\n

\"graph<\/a>

Savings from 3kW of solar with the current South Australian FiT.<\/p><\/div>\n

The first thing that jumps out at you is that in the first 3 years – whilst the generous FiT is in place – you are saving about $1200 per year based on both savings on your bill and credits for exported electricity. \u00a0The system is paid back in 5 years, and for the accountants out there – you are getting a very healthy 18.43% Internal Rate of Return. A pretty good investment?<\/p>\n

But let’s now compare that with the scenario if you buy your system after 30 September 2013, and miss out on the FiT:<\/p>\n

b) Scenario 2: Buying a good quality 3kW solar solar system without<\/em> the current Feed In Tariff<\/strong><\/p>\n

Key Assumptions:<\/p>\n

10c per kWh paid for all exported energy for the next 20 years.<\/p>\n

60% of energy is exported<\/p>\n

Cost of 3kW system is $5,800 out of pocket.<\/p>\n

Here’s what the savings look like now:<\/p>\n

\"solar<\/a>

Solar savings on a 3kW system in SA without the current FiT<\/p><\/div>\n

The difference is all in the first 3 years (obviously!). In this scenario you are losing about $400 per year for 3 years by missing the September 30 deadline. Your system pays for itself in 7 years, up from 5 and your IRR has dropped to 15.6%.<\/p>\n

These numbers will change based on the size of the system you buy and how much energy you export. Feel free to have a play with the calculator<\/a> using your own wild-assed-guess as to what the numbers should be for you!<\/p>\n

But to answer the question I posed above – “Is it worth getting a solar system before 30 September to get the current SA FiT?”. \u00a0I’ve gotta say “Yes”. You may put about $1200 extra in your pocket over 3 years and pay off your system about 2 years quicker, depending on how much energy you export. \u00a0So if you are considering buying solar in SA, it makes a lot of sense to get it by the end of September.<\/p>\n

And (warning blatant plug alert!) the easiest way to do that is to get 3 independent quotes from the best SA solar installers<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

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On a positive note though, the decision sees the lower rate\u2026","rel":"","context":"In "Solar Policy"","block_context":{"text":"Solar Policy","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-policy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":42736,"url":"https:\/\/www.solarquotes.com.au\/blog\/sa-feed-in-tariffs-mb1665\/","url_meta":{"origin":2659,"position":1},"title":"Feed-In Tariffs In South Australia: State Of Play In 2019\/20","author":"Michael Bloch","date":"September 1, 2020","format":false,"excerpt":"A new report from ESCOSA indicates South Australian solar owners had access to a wide range of feed-in tariff offers and generally had access to the same best-priced electricity plans as non-solar customers in 2019-20. The Essential Services Commission of South Australia is an independent economic regulator that was established\u2026","rel":"","context":"In "General Solar & Storage News"","block_context":{"text":"General Solar & Storage News","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-battery-news\/"},"img":{"alt_text":"Feed-in tariffs South Australia","src":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/sa-solar-electricity.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/sa-solar-electricity.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/sa-solar-electricity.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/sa-solar-electricity.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.solarquotes.com.au\/blog\/wp-content\/uploads\/2020\/09\/sa-solar-electricity.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":693,"url":"https:\/\/www.solarquotes.com.au\/blog\/south-australias-solar-customers-step-up-to-the-plate\/","url_meta":{"origin":2659,"position":2},"title":"South Australia\u2019s Solar Customers Step Up to the Plate","author":"Staff Writer","date":"November 25, 2011","format":false,"excerpt":"Well, South Australian solar customers can hold their heads high. A report released earlier this week by the Essential Services Commission of South Australia (ESCOSA) has found that around 80,000 electricity customers in the state will have installed rooftop solar systems by December of this year. This accounts for around\u2026","rel":"","context":"In "Solar Installation"","block_context":{"text":"Solar Installation","link":"https:\/\/www.solarquotes.com.au\/blog\/category\/solar-installation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36561,"url":"https:\/\/www.solarquotes.com.au\/blog\/energyaustralia-solar-tariffs-mb1371\/","url_meta":{"origin":2659,"position":3},"title":"EnergyAustralia Solar Feed-In Tariff Changes","author":"Michael Bloch","date":"January 17, 2020","format":false,"excerpt":"\"Big 3\" electricity retailer EnergyAustralia has very recently updated its solar feed-tariff rates - with three states losing out. A feed in tariff is a payment made to owners of solar power systems for the surplus electricity they generate that is exported to the mains grid[1. 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SolarQuotes founder Finn Peacock chatted with Sonya Feldhoff on ABC Radio Adelaide's Afternoons program yesterday about the home solar power situation in SA. 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