A feed-in tariff is an incentive to promote the purchase of renewable energy for your financial benefit.
Where the electricity utilities are obligated to purchase the electricity produced from the renewable sources that are fed into the electricity grid.
These can come from varied renewable sources including solar electricity, wind power, and hydro power.
Government legislation sets the rate of payment for the renewable energy at a higher price than the standard grid price, this helps to compensate for the money spent on installing your renewable electricity generating system and to bring the buyback period down to a time frame that could be between 1-3 years.
A feed-in tariff is generally phased out once the level of electricity prices are almost or relatively equal.
The NSW government announced details of the state's feed-in tariff scheme on June 23, 2009. Paying 60c/KWh on a net basis for solar systems up to 10kW in size. The feed in tariff legislation will be up for review in 2012.
For more information please visit the NSW Department of Water and Energy web site for up-to-date information.