Introduction
Understanding your feed-in tariff (FiT) is essential for maximising solar savings. Many households only look at the headline rate, but credits, caps, and time-of-use (TOU) export conditions can change the outcome significantly. By learning how to read the fine print, you can make better choices when comparing retailers.
Key Definitions
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FiT credit → A bill reduction per exported kWh.
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Cap → A limit on how many kWh earn the advertised FiT.
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Threshold → Export beyond a set level that may earn a lower rate.
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TOU export FiT → Rates that vary depending on when you send power to the grid.
Worked Examples
Example 1: Flat credit with no cap
If you export 10 kWh/day at 10c/kWh, you earn $1/day. With no caps or thresholds, this is simple and predictable.
Example 2: Cap applied
Suppose a retailer caps FiT credits at 8 kWh/day. Even if you export 12 kWh, only 8 kWh are paid at 10c. That reduces credits from $1.20 to $0.80/day.
Example 3: TOU export rate
A retailer might offer 5c/kWh in the morning but 15c/kWh between 3–8 pm. If you can shift exports into the evening, your daily FiT credit increases even if the total kWh exported stays the same.
Tips for Homeowners
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Always check caps and thresholds before signing up.
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Use inverter or smart meter data to predict your likely export profile.
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Compare TOU and flat rates using calculators to see which suits your usage.
FAQs
Q: Are FiT credits the same as cash?
They usually reduce your bill, but some retailers allow bank transfers if credits exceed charges.
Q: Do caps make a big difference?
Yes. For high-export households, caps can cut FiT income by 20–40%.
Q: Who benefits most from TOU export?
Households with west-facing panels or batteries that release stored power in the evening.
Conclusion
FiT credits, caps, and TOU export rules can make two plans with the same headline rate deliver very different savings. Always look deeper than the number on the brochure.
Try these tools:
Fit Savings Calculator · Retailer Rates · Postcode Estimator · Solar ROI Fit · Rate Change Tracker · Compare FiT by State