Efficient Seasonal Time of Use Feed-in Tariff for Residential Rooftop Solar Panels in Australian Electricity Market

Abstract

In Australia, the policy of introducing high feed-in tariff previously to encourage more consumers to install rooftop solar panels worked really well, and a large number of rooftop solar panels were installed during 2009–2012. This implies that consumers can be encouraged even more to install rooftop solar panels by offering relatively high feed-in tariff, who export electricity in particular during the peak periods or at the locations where it is difficult to supply with existing electricity transmission network. An efficient seasonal time of use feed-in tariff, therefore, can encourage more consumers to install rooftop solar panels, can improve electricity load factor, and can significantly reduce the electricity supply cost to regional consumers. An efficient feed-in tariff can also ensure that customer payback period is reduced and savings in the electricity bills are increased. This efficient feed-in tariff can help to reduce the urgent need of electricity infrastructure to meet the seasonal peak demand and reliance on the inefficient generating station which may need to run to cope with the electricity peak demand.