Why is there an Australian Feed in Tariff?

The Feed in Tariff scheme was devised for many reasons but all for the welfare of clean energy owners and for the further development and adaptation across Australia. Combined with all the other schemes that the federal government implemented (rebates, solar credits, bonuses and multipliers) switching to clean and renewable energy in Australia had been accessible to anyone.

Economical Reasons

The Feed in Tariff scheme made clean energy cheaper with a different set up, the scheme phased out the need for a battery to store unused electricity produced by your system. Eliminating the battery pack the scheme made solar panels cheaper and affordable for the majority and even for an average family with an average income.

Electricity stored in a battery can be put into waste and can decrease its volume if not used. On top of that battery packs may degenerate over time and may require constant maintenance and replacement in time and the savings that you gain will just be used up with the battery. And everything will just be futile…

Safety Reasons

By feeding electricity directly to the grid you are not storing huge amounts of live current at home. Though of course the battery packs are intended to withstand high voltage, it is still best without them lurking within your property. And damage to the battery by any form of abuse can spell disaster.

Decentralisation Purposes

With much said, decentralization had been the key to success for solar panels . The feed in tariff scheme encourages citizens to make the switch with all the benefits that they can gain aside from carbon footprint reduction.

How decentralisation did become the key factor? Well first of all having a centralised power system will cost a lot for the government.. Maintenance and the construction itself will be very costly and the power station will be susceptible to various harm, like Mother Nature’s wrath and terrorism and if so, repairs will cost even more and blackouts will be a major problem.

Second having decentralised electrical production system will lessen the government’s burden of administrating the a centralized system and can focus on other things that need to be addressed. However this does not mean neglect in any form and is proved by the various schemes implemented.

Maximizing every watt of electricity

During transmission and a portion of the electricity is lost especially when traveling very long distances. This is called system loss or line lost. And guess what? You as a consumer pays for it! Decentralised systems will eliminate this fact and you will be able to maximize every single watt that you produce.