What is Solar Self-Consumption and the Reason Behind its Adoption?

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Installing solar is an excellent way of saving money on your electricity bills. By having your own power generating unit, you rely less on the power grid. You can also install a solar system where you send it to the grid and get money for that. This practice is known as Solar feed in tariff NSW (FIT).

Ten years ago, the Feed-In Tariff was quite higher, but now it has reached a new low, the incentives now are pretty low, and due to that, many Australians argue whether it is feasible to install solar panels nowadays. Many Australians are getting frustrated by the incentives offered by these companies; they are retaliating by installing their own self consumption system.

Why are Consumers moving towards self-consumption?

As discussed, the incentives offered by retailers have decreased a lot. This has led to a trend towards self-consumption, meaning designing a system so that the energy needs are shifted to real-time usage of solar energy and saving surplus energy in batteries that can be later used when the sun is not there.

To give you a perspective, a typical household buys energy at 20-30 c/kWh and is offered a feed-in tariff of 5-10 c/kWh. You can see from the data that the retailers are selling electricity at higher price and repurchasing it at lower prices, and it is the primary reason why people in NSW are shifting to self-consumption mode. If you are a new consumer and want to install solar power, you need to look at all the data related to Solar feed in tariff NSW and then decide whether it is a feasible option.

solar house

Will this trend will continue?

The ongoing trend of self-consumption will grow as retailers’ companies are offering way fewer incentives. More and more people will shift towards a self-consumption system as it makes a lot of sense to invest in those kinds of systems.

What does solar self-consumption mean?

It is a model in which the building uses PV electricity for its own electrical needs, thus acting as a producer and a consumer at the same time. Solar self-consumption is becoming the preferred option in many countries due to many reasons:

• Self-consumption offers greater economic benefits
• It enables buildings to become self-sufficient
• It offers greater independence from the grid


Do you need to go off-grid?

No, you don’t have to go off-grid to use the solar produced electricity. You need a PV inverter that helps synchronize the PV system with the grid supply. With a PV inverter, your home will be powered simultaneously with both grid power and solar power. The solar inverters measure the grid voltage and the frequency at their connection point and deliver a power that matches the grid supply’s frequency and voltage.

Closing Lines

With energy companies cutting down the Solar feed in tariff NSW, more consumers will start moving towards the self-consumption model. It is a good alternative for the household as they are able to save more in this process than sending surplus electricity to the grid.


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