Flat Rate Electricity Tariffs vs Time of Use; Which One is more Beneficial?

Solar panels are being used around the world in a large number and almost every single house has them installed. Despite the fact that the installation cost is more, the subsidies provided by the government are making it easy for everyone just because it’ll lessen the burden on the national grid. However, it’s up to you now to decide whether or not you should use it more. The reason is that the demand for electricity isn’t the same for everyone. So, if you need more electricity, you’ll either need to install the bigger-sized solar system or you’ll have to import electricity from the grid which is a bit expensive. For this purpose, time of use tariffs is best.

Let’s see what time of use and flat rate electricity means and which one is better.

Comparison Between Flat Rate Electricity and Time of Use Tariff

Staying connected to the grid assures you that you will not be deprived of electricity at any instant. Whenever your panels aren’t working well, you can draw electricity from the grid to meet your energy requirements. Two types of tariffs are there in this regard.

• A flat Rate Tariff means you just need to pay a specific amount per kilowatt of power taken from the national grid.
• The time of use tariff makes you pay for each kilowatt of power taken from the grid with respect to time. It’ll be based on whether you use the power in the morning or during nighttime.

If we compare the two, we’ll get to know that time of use tariff is suitable to be used in the winter season because the sun isn’t usually out and you have to withdraw electricity from the grid quite often. So, you’ll have to pay the amount with respect to the time slots in which you use that power. On the other hand, a flat rate tariff is suitable for the summer season. The reason is that summer is the best time for solar panels to generate as much electricity as they can. So, you’ll have to withdraw very little electricity from the grid and ultimately, you’ll not have to pay much.

How to know if you’re Using FRET or TOU?

There are some ways which you can use to see whether you’re using time of use tariff or flat rate tariff. For that, you just need to take a look at your electricity bill where everything is mentioned regarding this. Moreover, you can also ask your electricity retailer about whether you’re using a Flat Rate Tariff or Time of use tariff. He will not only let you know about it but will also tell you which one is better among these and what appliances are suitable to be used for both these tariffs.

Want to talk to Australia’s most trusted Solar retailer?

At AusPac Solar, we think it’s important to provide our customers with the highest quality Solar System Installation and electrical work that come with the promise of ongoing servicing and maintenance support.

If you would like to discuss any of the points above or you are just wanting to engage with a genuine, customer-focused solar company that will deliver a solar installation at a fair and reasonable price, give our friendly team a call on 1300 197 237 or contact us here and one of our solar experts will be in touch.