Introduction
Many households assume that the highest feed-in tariff (FiT) guarantees the best solar savings. In reality, chasing the biggest FiT can backfire if other charges and conditions are overlooked. Here are the most common mistakes and how to avoid them.
Key Mistakes to Watch Out For
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Ignoring Daily Supply Charges
Some retailers offer higher FiTs but offset them with higher fixed daily charges. This can eat into your total savings quickly. -
Overlooking Import Tariffs
A plan may have a high FiT but also expensive import rates. Since most homes still rely on grid power at night, higher import tariffs can extend payback periods. -
Not Considering Export Caps or Thresholds
Certain retailers limit how many kWhs qualify for the high FiT. Anything above that cap may earn much less, lowering your expected return. -
Low Self-Consumption
If most of your solar power is exported, a higher FiT helps. But if your daytime usage is already high, self-consumption saves more than chasing FiTs.
Worked Example
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Plan A: 14c FiT, 38c import, $1.30 daily supply.
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Plan B: 9c FiT, 29c import, $1.00 daily supply.
A household exporting 40% saves more on Plan B, despite the lower FiT, because import costs and fixed charges are lower.
FAQs
Q: Is a high FiT ever worth it?
Yes, if you export most of your solar and your retailer’s supply/import charges are fair.
Q: Should I switch every time FiTs change?
Not always. Compare overall plan costs with tools like the Rate Change Tracker.
Q: How do I check if a plan suits me?
Use the Fit Savings Calculator and compare options in the Retailer Rates table.
Conclusion
Chasing the highest FiT can be misleading. Balance it against import tariffs, supply charges, and usage patterns. For better insights, try: