Victorian feed-in tariff customers get fair value

Published on:

July 16, 2017

The Victorian feed-in tariff currently offers a minimum of five cents per kilowatt hour for excess electricity fed back into the grid. All electricity retailers with more than 5,000 customers must offer at least this minimum rate, but they may offer different packages and terms and conditions.
From 1 July 2017, solar customers on the current minimum feed-in tariff rate will move onto a new minimum tariff rate of 11.3 cents, as set by Victoria's independent regulator, the Essential Services Commission (ESC), on 28 February 2017. This new tariff follows changes the government has implemented to the current feed-in tariff framework, and will better reflect the true energy value of the electricity customers provide to the grid.
The feed-in tariff is available to solar and other eligible forms of renewable energy, such as wind, hydro or biomass, with a system size less than 100 kilowatts. This rate is determined by the ESC. More information on this rate can be found on the ESC website.
The current Victorian feed-in tariff scheme commenced on 1 January 2013.
Ensuring Victorian feed-in tariff customers get fair value On 7 February 2017, the Energy Legislation Amendment (Feed-in Tariffs and Improving Safety and Markets) Bill (the ELA Bill) passed through Parliament.
The ELA Bill amended to the Electricity Industry Act 2000 (the Act) to allow Victoria's independent regulator, the Essential Services Commission (ESC) to determine a single rate or multiple rates for purchases of small renewable energy generation electricity, and to have regard to the avoided social cost of carbon and the avoided human health costs attributable to a reduction in air pollution.
The amendments also moved the setting of feed-in tariffs from a calendar year to a financial year, commencing on 1 July 2017, requiring the ESC to make its final minimum rate determination no later than 28 February of each year.
The changes to the Act will ensure that from 1 July 2017, solar customers have access to new rate(s) which better reflect the true energy value of the electricity they export into the grid.
Households on the Premium Feed-in Tariff (PFiT), who currently receive 60 cents per kilowatt-hour, will have no change to their existing arrangements, as this tariff remains in place until 2024. The PFiT closed to new applicants at the end of 2011.

REF - https://www.energy.vic.gov.au/renewable-energy/victorian-feed-in-tariff

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