Why You Shouldn’t Go For Smaller Solar Power Systems For Higher FiTs
While shifting to eco-friendly ways of power generation and consumption is the need of the hour, what’s even more important from a consumer point is, shifting to more economical ways.
But even though some electricity retailers offer higher feed-in tariffs for a smaller solar panel system, it isn’t recommended you go for it.
In NSW and many other parts of Australia, the highest rates of feed-in tariffs are available for panels below a specific size- usually 10kWs. You might think that in order to get increased feed-in tariffs from your retailer, getting smaller-sized systems installed is a good idea. But it is not. This is because:
- Larger solar panel systems are better for the environment in comparison to smaller ones.
- Feed-in Tariffs are decided on the whims of the electricity retailer and could be changed at any time. So, once your contract gets over, it is likely that you are stuck with a smaller system and lower tariffs.
- It is possible that you will make more money with larger systems.
- Larger systems are a better investment and would work well if you do get a battery in the future.
How to find the best Solar plan?
Finding the best solar plan is a little tedious. With a time-of-use tariff, where the price of electricity varies at different times of the day, your solar plan will totally depend on when you consume grid electricity. Moreover, if you have a demand tariff, i.e., an additional fee over your standard electricity charges then you might end up paying a lot more for using the electricity at the wrong time. Also, solar plans can change at any time during the year. So, an offer might not be the same during that period.
In New South Wales, the maximum feed-in tariff given by a company that has a size limited plan is 0.4 cents greater than the highest unlimited competitor. This less than a cent difference is not worth installing a smaller system.
Since the retailers can change their feed-in tariffs at any point, the size limits might disappear in the future, and you might get stuck with a smaller system. Getting a larger solar power system is the best option for both your future and the environment’s future.