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How Much Solar Energy Can You Export Back into the Power Grid?
Got solar panels? Brilliant.
But if your system is generating more than you need, you could be sitting on untapped value. Instead of wasting that excess energy, you can send it back to the grid and get value in return. This process, which is known as solar exporting, can help lower your power bills and stretch the value of your solar setup.
But how much can you really export? What are solar buyback rates? And are there any limits and hidden costs?
Here’s a simple breakdown of how solar energy exports work in Australian households and what you need to know before you cash in.
How Solar Exporting Works
Exporting solar energy is simpler than you might think. Your system powers your home first and any leftover energy flows out into the grid. With the right setup, you can earn credits on the excess power you send out.
Here’s how the process works:
- Your home uses the solar power first, then any extra is exported.
- Your energy retailer may credit your bill for exported electricity through feed-in tariffs (FiTs)
- A smart meter tracks both your energy usage and what you send back to the grid.
- While exporting helps reduce your bills, actually using your own solar energy directly tends to offer the best savings.
How Much Can You Earn?
What you earn from exporting solar energy depends on your feed-in tariff. This is the rate your energy provider pays you for every kilowatt hour (kWh) of solar energy you export.
Key points to know:
- Most current feed-in tariffs range between 1 and 12 cents per kWH, depending on state.
- Feed-in tariffs rates vary by retailer, state, even time of day (higher during peak sunlight hours).
- These payments are called solar buyback rates. A solar payback period is how long it takes for your solar savings to cover installation costs.
- Retailers offer different plans, so shopping around can improve your returns.
What are solar export limits?
There are rules about how much solar energy each home can export. These are limits set by network operators to keep the grid stable and avoid overloads.
Here’s what you should know:
- Most states cap solar exports at 5 kilowatts per phase for single phase homes,
- Although, some suburbs allow for higher export limits up to 10 kilowatts per phase.
- In some areas, homes may be assigned very low or even zero export limits.
- These limits don’t stop your panels from working; they just control how much energy can be sent to the grid.
- To find out more about solar export limits, ask your provider.
Possible Charges or Losses
While solar exporting has clear benefits, there are a few things that could reduce your savings - including possible export charges and minor energy losses.
- The Australian Energy Market Commission (AEMC) has proposed a new rule which could allow networks to charge around 2 cents per kWh for solar exports.
- These fees, if introduced, could reduce solar savings by 5% to 8% annually.
- Some plans may apply time-based charges, with exports in the evening potentially attracting higher fees.
- Technical losses in energy transmission are common and small. These usually go unnoticed by households.
- Look into smart systems and batteries which can help store and manage excess solar energy: A guide to solar battery storage and technology | ENGIE
Exporting excess solar energy to the grid is a smart way to cut your energy bill. While feed-in tariffs offer some value, using your own solar power is still the most cost effective strategy. Know your local export limits, keep track of your energy retailer’s rates and use smart tools to track your systems performance.