A feed- in tariff is a system of paying money to people for producing extra electricity, i.e. the surplus electricity left after their consumption. A solar feed- in therefore is the electricity one produces with the help of solar panels and other devices. This tariff or fees is paid by a lot electricity retailers.
These feed-in tariffs (FIT) are basically provided by electricity provider in the form of a fees to every person who produces more electricity than they consume. if in case they consume as much as they produce then the charge is set off against their bill. Another method of calculating these tariffs is by calculating the amount of energy sent back to the grid by your solar panels every hour.
In order to avail this service, a person has to apply to their electricity retailer and an agreement has to be signed specifying the amount you will be paid for every kW/h energy you produce. A union or a solar supporting group called Solar Citizen has been formed to look after fair pricing and help you lobby for a fair deal.
For example: if a person provides to the grid about 800 kW/h electricity in a month and consumes about 1000 kW/h then his electricity bill would only be for the extra 200 kw/h electricity consumed by him. These solar feed-in tariffs can be higher or lower than the rates charged by your electricity retailer, i.e. a person may be charged for his consumption on retail rates but may receive tariff rates for his production.
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You need to apply to your electricity retailer to receive the feed-in tariff. When signing an agreement with your electricity retailer, you need to be informed how much you will be paid for every kW/h exported.
The amount that you’ll get paid as a Feed-in tariff matters mainly if you install a larger system that produces more power than you would expect to use during day light hours. If you’re simply offsetting your current usage or reducing the amount you draw from the grid, you wouldn’t have been paid for exporting much power anyway and the feed in tariff isn’t as important.
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