What is a tariff?

What is a tariff?

A tariff on your energy bill refers to a pricing change or a subsidy.


Feed in tariff
If you have solar you may have a feed in tariff - listed as a CREDIT on your bill. A feed-in tariff (FiT) is a rate paid for electricity fed back into the electricity grid from a designated renewable electricity source (for example, solar panels on your roof). If you are interested in seeing how this could work for you, check out the Victorian Energy Compare solar savings calculator.

 

You can learn more at the Solar Victoria website: 

https://www.solar.vic.gov.au/


Time of use tariff
If you have an older energy contract you may have a time-of-use tariff (PEAK and OFF PEAK; or PEAK LOAD and PEAK DEMAND) usage. To make the most of the time-of-use tariff it's best if you choose the cheapest time of day to use energy. Off-peak electricity rates are times of the day you can use your energy at a reduced cost. These times are usually when most households are not using energy and are typically at night or on the weekends. By choosing to use certain appliances at off-peak times rather than peak, you could save on your electricity bill.

    • If you purchase energy from the grid, and have time-of-use (off-peak) tariff:-
      • Switch HWS to off-peak
      • Choose to use washing machine, clothes dryer and dishwasher during off-peak times (after 11:00 pm and before 6:00 am weekdays and / or on weekends)
    • If using self-generated solar power:
      • Switch your HWS to peak tariff
      • Choose to use washing machine, clothes dryer and dishwasher, and as many other appliances as you can, during the daytime (but not all at once, or your PV will be overloaded and you'll be drawing energy from the grid)
      • When the panels are not producing electricity at night, electricity is supplied from the existing electricity grid
    • If you have solar battery backup, the electricity stored in the batteries can be used at night or during blackouts and it isn't integral what time of day you use power