Feed-in Tariffs

Premium Feed-in Tariffs

The Victorian Government is supporting Victorians to invest in solar photovoltaic (PV) systems through the introduction of a premium feed-in tariff. See the Media Release

Households, community organisations and small businesses with energy consumption less than 100 MWh a year , with solar PV systems up to 5.0kW in size, will be eligible to receive a credit of 60 cents per kilowatt hour for energy they feed back into the grid.

Other renewable power systems for homes and businesses (up to 100 kilowatt capacity), including wind, hydro and biomass, remain eligible for the existing standard feed-in tariff, which pays the retail rate for any excess power they supply to the electricity grid.

This premium feed-in tariff scheme encourages energy users to be energy efficient, as the more power saved the higher the credits. It also strikes a balance between helping households, community groups and small businesses implement solar technology and minimising the cost imposed on all Victorian small electricity customers.

To ensure solar energy is a key part of our energy future the Victorian Government is also investing in new solar technologies and large-scale solar generation as well as creating a market for large-scale solar generation through the Victorian Renewable Energy Target and support for a national emissions trading scheme and national renewable energy target.

Modelling Reports - These reports were prepared or commissioned to assist in the development of the Victorian premium solar feed-in tariff scheme.

Standard Feed-in Tariffs

For wind, solar, hydro and biomass generation up to 100 kilowatts

Legislative amendments were passed by Parliament on 9 August 2007 to extend existing legislative provisions for feed-in tariffs beyond wind to include micro generation from solar, hydro and biomass. The amendments also strengthen the current provisions and enable the Minister for Energy and Resources to refer feed-in tariff offers to the independent economic regulator - the Essential Services Commission - if they are not considered to be fair and reasonable.

The criteria used to assess the feed-in tariff offers is given below:

Feed-in Tariff Fair and Reasonable Criteria (PDF 25KB)

The legislative amendments took effect on 1 January 2008. They ensure that people are offered a “fair price” by retailers for the excess power that they generate from the system that they install.

The Victorian Government will continue to demonstrate leadership in improving the efficiency and sustainability of the supply and use of energy. Further details about the Government’s climate change initiatives are available on Victorian Greenhouse Strategy (external link).

Feed-in tariff stakeholder forum

The Department of Primary industries held a forum with key stakeholder groups on 28 September 2007. The purpose of the forum was to:

• Consult on the August 2007 legislative amendments which strengthen feed-in tariffs; and
• Consult on wether further measures to increase the uptake of renewable energy generation by households were required.