Understanding Feed In Tariffs for Solar
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A feed in tariff is the rate a household is paid for surplus solar electricity exported back to the grid, generated whenever a home's solar panels produce more power than is being used on site at that particular moment in time, with the excess flowing outward automatically through the connection point.
Rates vary considerably depending on the electricity provider, the region and the time the system was installed, with some tariffs set by regulation and others negotiated commercially between providers competing for customers who already have solar systems installed on their roof and generating a surplus.
Because feed in tariffs are typically lower than the retail price a household pays for electricity drawn from the grid, using solar generated power directly within the home, rather than exporting it, generally offers better financial value, which is part of why battery storage has become increasingly attractive alongside solar systems in many households.