The Solar Feed-In Tariff is dropping again! Learn how a VPP and solar battery can earn you passive income
Does it ever feel like the powers that be are angry at you for going solar?
South Australia’s’s regulators have announced they’re slashing their recommended tariff. This tariff decides how much credit you get for sending power to the grid. From July 1st, the minimum solar feed-in tariff will be reduced to $0.10/kWh.
Here’s the good news…
VPP can earn you passive income!
The solar tariff will be the lowest it’s been since 2016. On top of that, many solar households are bumping up against new solar export limits. That means the amount of power you can send back to the grid is limited. And if that wasn’t enough, the government is considering shutting off your solar panels in times of oversupply. It’s one thing not to let you sell your excess power back to the grid. But at some point, they won’t even let you use your own power!
You can only sell what they let you, and even then – you only get what they’re willing to pay you. And that rate is about to get slashed again.
Enough’s enough! Now’s the time to ask the tough question: Are solar tariffs really still the best way to make income from your solar system?
That might be a tough question, but it’s an easy answer. No.
Here’s the good news. VPP is a viable way to earn passive income from a solar and battery system. By joining this VPP, you can support the grid while getting paid a premium whenever the VPP uses your battery.
Ready to set your own rules? Talk to our solar experts and find out how to join this VPP today.
Solar Panels generate energy only during the day when the Sun is shining. All electricity produced by them must be used in real-time. The excess or unused energy produced during daylight hours can be sold to the grid using feed-in tariffs (FIT). However, recent changes meant massive decrease in FIT, making it not profitable for you to sell, as you get compensated next to nothing (approx. 8 cents). Then when you need electricity when the Sun goes down, you end up buying the electricity from the grid at super high rates (up to 40 cents).
These recent changes to FIT mean you benefit the Electrical company, not yourself.
If the energy generated by your Solar during the day is not saved for use later, all your energy needs after 5pm approx. must be met by buying electricity from the grid. Also, since the sun doesn’t shine all the time, even in summer, you’re never going to be able
That’s where a battery comes into play.
A battery is an energy storage system that stores excess of your FREE electricity from solar panels, so that any electricity that isn’t used immediately is stored for later use, when the sun is not active enough for your solar (approx. after 5pm in summer and 4pm in winter). By storing excess energy and making sure you always have access to your FREE electricity at the evening you save money.
Your battery allows you to use your solar panels as effectively as possible. In fact, the right battery can help you to intelligently utilise your FREE solar energy your panels produce – from around 25% to as much as 80% (for an average solar home) – and dramatically reduce your energy bills. Saves you big money from buying electricity from the grid at high rates after 3 pm.
Let’s face facts: the days of solar feed-in credits cancelling out your power bill are over.
With so many households adopting solar, too much power is being created during the day. In fact, Australia’s home solar systems often create more power than the grid can handle. On the one hand, it’s great that so many people are going solar. On the other hand, the overload can result in real problems for the grid, including blackouts. That’s why we’re seeing drastic cuts to tariffs as well as more severe measures like the government shutting off your solar panels during times of of excess energy.
But here’s the thing about the grid: it can’t stand alone. It’s too old, too broken, and too slow. When there’s too much power flowing into it, you get blackouts. And when there’s too much power flowing from it, you get power surges. What the grid needs is a way to help smooth out its spikes and valleys.
There are a few possible solutions to this problem. But most of them involve dangerous or damaging processes such as fracking for natural gas. What we need is a better, more sustainable way to help the grid manage its ups and downs.
That’s where VPPs come in.
VPPs are among the most reliable and sustainable ways to help stabilise the grid. A VPP is basically a network of home solar batteries that can provide support to the grid on demand. When the grid needs more power, it can draw it from home batteries, And when it has too much power, it can send some of the extra straight to those batteries. And because these batteries are providing valuable support and replacing expensive fossil fuel services, the homeowners are compensated.
And unlike other solutions to this problem – *cough* natural gas *cough* – VPPs are a win-win. They’re responsible, sustainable, and more responsive. As a software-based solution, a VPP can rapidly respond to the needs of the grid, offering more stable power for everyone. All without contributing to future ecological disasters.
For the participants, the benefits are numerous. You get paid a premium rate for helping the grid, which amounts to passive income for your household. And since you have a battery, you’re already generating and storing almost all the power you need to run your home. That means that the plummeting solar feed-in tariff will barely affect you. PLUS you get payments every time the VPP uses your battery.
With tariffs dropping, joining a VPP has become the best way to make extra money from your solar and battery system.
The community VPP offers a new way to make passive income from your solar and battery system.
With this VPP, you get a premium rate- times more whenever your battery is used by the VPP. On top of that payment, you also get your normal tariff, but you get to pick and choose the energy retailer you work with. That freedom ensures you’re always getting the best possible price for your energy.
That bears repeating. You get a premium rate- times more. Every. Single. Time. And that’s on top of the ordinary solar feed-in tariff.
The boom times of the feed-in tariff are in the past. It’s now as low as it’s been in the last half-decade. And it’s unlikely it will ever rise back to a level where it can do serious damage to your power bill. It’s time to change our way of looking at solar.
VPP credits are the new solar feed-in credit. With this Community VPP, you get paid a premium rate every time your battery is used by the grid. It doesn’t matter if you’re sending excess power to the grid or getting extra power from the grid. You get paid your premium rate every time. That’s passive income just for having a solar & battery system in your home. And since you’re already storing all the power you need for your own home, that income is basically a bonus that can send your energy costs into credit. Imagine making money every quarter instead of paying.
Actually, you don’t have to imagine.
Make sure that solar power always makes financial sense. Talk to our experts about joining the Intelligent EnergyHub Community VPP.
FOR MORE INFO
Get in touch
"*" indicates required fields
