Understanding Feed-in Tariffs with a Solar Battery in Perth

Perth homeowners have long been attracted to solar energy because of the promise of feed-in tariffs. These tariffs allowed households to sell excess electricity generated by their solar panels back to the grid, creating a small but steady income stream. For many, this was a compelling reason to invest in solar systems.

If you are exploring solar energy options, you may also want to refer to The Ultimate Guide to Solar Batteries for Perth Homeowners for a complete understanding of how batteries integrate with solar panels and optimise energy use.

Over the years, feed-in tariffs have been an important factor in the financial calculation of solar investments. However, the landscape is changing. With tariff rates decreasing and energy prices rising, storing your solar energy using a battery has become increasingly attractive.

Batteries allow you to maximise self-consumption, which can often be more financially beneficial than selling energy back to the grid. This guide will explain feed-in tariffs, why self-consumption is now a priority, and how a solar battery can transform your energy strategy in Perth.

What is a Feed-in Tariff in WA?

Feed-in tariffs (FITs) are payments that energy retailers in Western Australia provide to households for sending excess solar energy back to the electricity grid. In simple terms, if your solar panels generate more electricity than your household consumes during the day, the surplus is exported to the grid, and you earn a tariff for each kilowatt-hour (kWh) sent.

The rate of feed-in tariffs varies depending on your energy provider and the type of plan you are on. Most residential customers receive a lower rate than the retail electricity cost, which means selling your surplus solar energy is often less profitable than using it yourself.

Eligibility for feed-in tariffs typically requires registration with your energy retailer and compliance with system installation standards. The calculation of payments is usually straightforward: the total exported energy multiplied by the applicable tariff rate, credited to your electricity account each billing cycle.

For Perth homeowners, feed-in tariffs were once a significant incentive, but today, the low rates make using stored energy from a battery a smarter financial decision in many cases.

Why Storing Power Can Be Better Than Selling It

In the early days of solar adoption, the strategy was simple: generate energy, consume what you could, and export the rest. With feed-in tariffs, exporting made sense because households could earn a small return. Today, however, tariffs are relatively low, often only a few cents per kWh, while the cost of electricity from the grid is much higher.

This creates a new dynamic. By storing your solar energy in a battery, you can use it during peak periods when electricity prices are higher, rather than exporting it for a low tariff. The financial advantage is clear: every kilowatt-hour you consume yourself is worth more than what you could earn from selling it back to the grid.

Using Your Own Energy First

A solar battery prioritises self-consumption. When your panels generate electricity, your household draws power first. Once your immediate needs are met, the battery stores any surplus. Later, when the sun has set or your demand increases, the battery releases stored power, reducing or eliminating the need to buy from the grid.

This approach ensures you maximise the value of every kWh your system produces. By using your own energy first, you save money on high-rate electricity rather than relying on relatively low feed-in tariff payments.

The Declining Value of Feed-in Tariffs

Feed-in tariff rates in WA have declined over the past decade. Earlier schemes offered attractive returns, but current rates are modest, often less than 10 cents per kWh. Meanwhile, electricity prices have continued to rise, making grid consumption increasingly expensive.

This shift has changed the economics of solar systems. Selling energy back to the grid is no longer the most lucrative option. Instead, using a battery to store and consume your solar power maximises savings and increases energy independence.

Maximising the Benefits of Your System

Adding a solar battery can increase the value of your solar system by reducing electricity sent to the grid and boosting household savings. A battery stores surplus energy and releases it when it is needed, allowing you to use your own solar power instead of buying from the grid at higher prices.

• Without a battery: Consider a Perth household with a 6 kilowatt solar system. On a sunny day, the system generates 25 kilowatt-hours, while the household only consumes 20 kilowatt-hours. The extra 5 kilowatt-hours is exported to the grid. With a feed-in tariff of 8 cents per kilowatt-hour, the homeowner earns just 40 cents. Most of the energy’s value is lost because it is sold at a very low rate.
• With a battery: Using the same household example, a solar battery stores the 5 kilowatt-hours of surplus energy. Later in the evening, when electricity rates rise to 35 cents per kilowatt-hour, the stored energy is used to power the home instead of buying from the grid. This results in a saving of 1 dollar and 75 cents for that day, more than four times the value of exporting the energy to the grid.

By using a solar battery to prioritise self-consumption, Perth homeowners can make their solar systems much more financially effective, reduce reliance on the grid, and maximise the return on their solar investment.

Building Energy Independence in Perth

Prioritising self-consumption with a solar battery provides both financial and lifestyle benefits. Homeowners reduce their reliance on the grid, protect themselves against rising electricity prices, and maintain power during minor outages. Over time, the savings from using stored solar energy can offset the initial investment in a battery, making it a smart long-term decision.

Moreover, by focusing on self-consumption, homeowners become less dependent on fluctuating feed-in tariffs. Even as tariffs decrease further, the value of your stored energy remains high, ensuring your solar system continues to deliver meaningful savings.

For Perth homeowners who want to understand how using a solar battery can affect feed-in tariffs and household savings, it is helpful to see the bigger picture of solar systems and battery storage. You can find a detailed explanation in our guide to solar batteries for Perth homes.

Wrapping Up: Ready to Maximise Your Solar Savings?

Feed-in tariffs were once a key incentive for installing solar panels in Perth, but the economics have shifted. Today, using a solar battery to prioritise self-consumption offers significantly higher savings than exporting surplus energy. By storing and using your own electricity, you not only reduce bills but also increase energy independence and make your solar investment more effective.

Maximise Your Solar Savings with a Battery

Fritts Solar helps Perth homeowners make the most of their solar systems by integrating high-quality solar panels with efficient battery storage. Our team provides professional advice on system setup, installation, and maintenance to ensure you maximise self-consumption, reduce reliance on the grid, and increase your electricity savings. Get in touch with us today to discuss the best solar battery solutions for your home and receive a free quote. Start storing your solar energy and keep more of your power and money in your own home.