Feed-in Tariff Guide for Solar ROI

Export price is one of the most important assumptions in a solar cashflow model.

What feed-in tariff means

A feed-in tariff is the price paid for solar electricity exported to the grid. In some markets it is a fixed policy rate. In others it is linked to wholesale prices, avoided cost, net billing, renewable credit rules, or utility-specific programs.

Why self-consumption often matters more

When retail electricity prices are higher than export prices, self-consumed solar energy is more valuable than exported energy. This means a smaller system matched to daytime load can sometimes have stronger economics than a larger system that exports most output.

Net metering and net billing

Net metering may credit exported kWh close to retail value. Net billing usually credits exports at a separate rate that can be lower. The difference can change payback, IRR, and recommended system size.

Questions to ask

• Is the export tariff fixed, variable, or subject to policy review?
• Does the tariff apply for the whole project life or only for a contract period?
• Are there grid fees, metering fees, or minimum bills?
• Does the customer have time-of-use pricing?
• Are incentives paid per kWh, per kW, or as tax credits?

Use the actual utility contract when available. Default tariffs are only screening assumptions.