Choosing the highest feed in credit is generally not good advice

The NSW Solar Bonus Scheme ends on 31st December 2016

Advice on some online forums suggests consumers affected by the end of the NSW Solar Bonus Scheme should choose a retail tariff offering the highest feed in credit. This is poor advice because the solar feed in credit is only one component of the electricity bill. The most important components are:

  • Solar feed in credit
  • Electricity usage charges
  • Daily charges
  • Offered discounts (usually for paying the account on time)

One retailer is currently offering a special deal to their customers with double the standard feed in credit. To qualify for the higher feed in credit consumers must pay an annual fee. Analysis of this tariff shows the typical Sydney household affected by the end of the NSW Solar Bonus Scheme will be at least $200 a year better off if they do not accept this tariff.

Consumers are encouraged to use the various impartial tariff comparison website (e.g. Energy Made Easy) before accepting any retailer tariff. Unfortunately in a major policy failing retailers are avoiding listing these tariffs by claiming they are ‘special offers’.


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ABC News Segment

ABC News (NSW) aired a short segment including an interview with Dr Gill on 26th October 2016

Citation

Copyright of this article remains with Dr Martin Gill. All references to this article should include the author’s name and website www.drmartingill.com.au.

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The author is happy to receive comments or questions about this article. He can be contacted here