Why does Australia need feed-in tariffs?
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Like most other renewable energy sources, Solar Panels have excellent benefits. Not only do they reduce atmospheric pollution they also have many socio-economic benefits in the form of increased employment and technology development.
Generally when electricity is sent over any large distance, some of it is lost through ‘line loss’. This can be seriously reduced through producing energy locally through domestic Solar panels and feeding it back into the grid, where it can then be used to service other local requirements without any ‘line loss’.
There are a host of problems with centralised power stations producing the electricity used on the grid, such as disruption from forest fires and storms. However a network of decentralised local suppliers can mean less of a break in service during these times. Blackouts are very common during the summer months when the demand for electricity is the highest and the system overloads as a result. This is when solar power makes it’s greatest contribution to the National Grid’s power supply.
The idea of the Feed-in Tariff is that it helps to balance out these failures in the National Grid and thus rewards those who invest in Solar Powered Technology for the contribution that they make to the country as a whole, through offering financial incentive.
Find out what a feed-in tariff actually is and what programs are running in each state here.
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