Solar households in Victoria, South Australia and New South Wales will this year cease to be paid for power they export into the electricity grid. In South Australia, some households will lose 16 cents per kilowatt-hour (c/kWh) from September 31. Some Victorian households will lose 25 c/kWh, and all NSW households will stop receiving payments from December 31.

These ‘feed-in tariffs’ were employed to kick-start the Australian solar photovoltaic (PV) industry. They offered high payments for electricity fed back into the grid from roof-mounted PV systems. These varied from state to state and time to time.

For many householders, these special tariffs are ending. Their feed-in tariffs will fall precipitously to 4-8 c/kWh, which is the typical rate available to new PV systems. In some cases, households may lose over A$1000 in income over a year.

While the wind-back may hurt some households, it may ultimately be a good sign for the industry.

Read the full article on The Conversation.