Premium feed-in tariff for solar

Who is eligible? | Case studies | Step by step guide | Quick tips

Victoria’s premium feed-in tariff offers Victorians with solar photovoltaic (PV) systems, up to five kilowatts in size, a guaranteed credit of at least 60 cents per kilowatt hour for excess electricity fed back into the grid at any time of the day or year.

The premium feed-in tariff encourages Victorians to reduce their individual carbon footprint, by making solar panels more economical for the average household and rewarding Victorians who return unused power to the state electricity grid.

The premium feed-in tariff for solar power will be available in Victoria for the next 15 years, for a total capacity of 100 megawatts of solar power across the state.


Who is eligible?

All electricity retailers (with more than 5,000 customers) must offer a premium feed-in tariff for solar to their customers.

If you already have a solar PV system or are thinking of installing one, there is a good chance that you can access the premium feed-in tariff.

To be eligible you must:

• Be a household, community organisation or small business;
• Have a solar PV system no greater than five kilowatts in size;
• Claim only solar PV systems installed at your principal place of residence (if you are a household);
• Consume 100 megawatt hours or less of electricity per year (if you are a small business or community organisation);
• Claim only one solar PV system per site.

Retired Couple
Panel size	1.5 kW
Average annual electricity consumption	6,000 kWh
Average solar generation	2,500 kWh
Excess electricity exported to the grid	500 kWh
Premium feed-in savings
Total electricity bill (before solar panel)	$1200 per year
Amount saved on buying electricity by having solar panels	$340 per year
Credit through feed-in tariff for electricity sent to the grid	$300 per year
Total $ savings	$640 per year
Final electricity bill	$560 per year

Working Couple
Panel size	1.5 kW
Average annual electricity consumption	5,000 kWh
Average solar generation	2,500 kWh
Excess electricity exported to the grid	600 kWh
Premium feed-in savings
Total electricity bill (before solar panel)	$1000 per year
Amount saved on buying electricity by having solar panels	$323 per year
Credit through feed-in tariff for electricity sent to the grid	$360 per year
Total $ savings	$683 per year
Final electricity bill	$317 per year

Family with two kids
Panel size	1.5 kW
Average annual electricity consumption	8,500 kWh
Average solar generation	2,500 kWh
Excess electricity exported to the grid	400 kWh
Premium feed-in savings
Total electricity bill (before solar panel)	$1,700 per year
Amount saved on buying electricity by having solar panels	$357 per year
Credit through feed-in tariff for electricity sent to the grid	$240 per year
Total $ savings	$597 per year
Final electricity bill	$1103 per year

• To take up the premium feed-in tariff, you will need to create a new contract with an electricity retail company of your choice. Shop around for the deal that best suits you as different electricity retailers may offer different terms and conditions.
• Choose your electricity retailer upfront. They may be a valuable source of advice and assistance. For further information about choosing an electricity retailer visit www.yourchoice.vic.gov.au (external link).
• Ask your electricity retailer if they will offer the feed-in tariff as a direct payment or as credits to your electricity bill.

• Shop around for quotes from different solar installers. A list of accredited installers of solar PV systems is available at www.cleanenergycouncil.org.au (external link).

• To access the feed-in tariff, you may need a new electricity meter which can measure both the power you use (imports) and the power you send to the grid (exports). This meter will record your power imports and exports every half hour.
• If you currently have off-peak rates for hot water or space heating, check with your electricity retailer whether changing your meter will impact on these rates.

• If you already have a solar PV system installed and think that you may be eligible to receive the premium feed-in tariff, contact your electricity retailer and ask about arranging a new offer.
• If you already receive the standard feed-in tariff and want to change to a premium feed-in tariff, you will need to contact your electricity retailer to set up a new contract. You cannot receive both the feed-in tariffs for the same system at the same time.

• There are a number of government rebates, certificate schemes and solar credits available that could help you save money.

Quick tips Shop around several electricity retailers for the premium feed-in tariff contract that best suits you. Compare quotes from different solar installers. Find out what rebates and other financial support might be available. Check if your meter is capable of receiving the premium feed-in tariff and find out if changing your meter will impact your electricity prices. Installing solar panels is a major investment, so the more research you do upfront the better.