Solar Power Feed In Tariff Information

Premium feed-in tariff for solar (VIC)

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, which commenced on 1 November 2009, will be available in Victoria for the next 15 years, for a total capacity of 100 megawatts of solar power across the state.

 

Visit the government FAQ page for more information. Click here.

 

Who is eligible? (VIC)

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.

How is excess electricity fed to the grid measured? (VIC)

To access feed-in tariffs you will need a new meter that is capable of recording the electricity used and exported for each half hour interval during the day. This means that if, during any part of any half hour period, your PV system is generating more power than you are using, you will get the premium feed-in tariff for the electricity exported to the grid.

Overall a household would generally use more electricity than it produces from solar PV cells. However a household is likely to export some electricity into the grid at some times of the day and will therefore be paid the premium feed-in tariff for these exported volumes.

The amount of electricity exported from solar panels for community groups and small business depends on their electricity usage patterns.

When you receive a new “smart meter” as part of the Government's separate advanced metering infrastructure rollout program, this meter will be fully capable of supporting feed-in tariff payments.

 

Choosing an Electricity Retailer (VIC)

The way in which energy retailers offer feed in tariff credits varies greatly. Retailers generally place any excess credits onto your account to be rolled over to the next billing cycle. Some retailers will allow any excess credits to be paid out to the customer on request after 12 months or upon termination of contract, while others simply do not offer any payouts meaning excess credits are extinguished. Also, retailers must offer at least 60 cents per KWh as the Premium feed in tariff rate, however, some retailers are offering more (up to 68 cents in some cases). It is well worth your while to do your research when choosing an energy retailer.  

For a list of energy retailers and their current feed in tariff policies and rates click here

 

Gross vs. net feed in tariff

A net feed in tariff, also known as export metering, pays the PV system owner only for surplus energy they produce; whereas a gross feed in tariff pays for each kilowatt hour produced by a grid connected system. It's a very important difference. 

 

Is an income from a feed in tariff taxable?

At this point, there doesn't appear to be any specific taxation legislation dealing with income derived from feed in tariffs. Whether it is assessable income depends on the income producing nature of the activity. If it can be demonstrated that the system was installed with a view to making a profit, then receipts under the feed in tariff would be considered assessable income while all expenses associated with the income generating activity would be deductible (eg depreciation).

In most cases, systems installed at domestic sites would not be taxable as they would be considered personal use / hobby (i.e. not in the nature of a business or profit making scheme). If the system is installed at a commercial site, it will most likely be considered taxable. However, system owners should consult their  accountant for advice.

 

Victoria net feed in tariff

Victorian households with solar power systems will be paid a feed in tariff from November 2009. Legislation for the Victorian feed in tariff was introduced on March 10th 2009; then revised and passed on June 25, 2009.

Under the program, Victorian households, community organisations and small businesses who consume less than 100 megawatt hours of electricity  a year will be credited a minimum 60 cents for every unused kilowatt hour of power fed back into the state electricity grid. Some electricity retailers may offer a higher amount.

However, this will only be as a credit on a bill, rather than a cash payment as in other states. If the system owner generates credit from the feed-in tariff exceeding the cost of their electricity consumption during the billing period, the additional credit is rolled over to the next billing period up to a maximum of 12 months from the generation date. Depending on the electricity provider, accumulated credit may voided after the 12 months.

The tariff will only be available until a total capacity of systems participating reaches 100 megawatts total capacity.

PV systems larger than 5 kilowatts in size and other renewable energy systems up to 100 kilowatts in size remain eligible for the standard feed-in tariff.

Further details

 

South Australia net feed in tariff 

 

From July 1 2008, qualifying South Australian residents will receive $0.44 per kilowatt-hour. The feed in tariff program is available to all qualifying South Australian residents, regardless of the electricity company that provides power to their premises.

 

ACT gross feed in tariff

In July 2008, legislation was passed in the ACT's Legislative Assembly for a gross feed in tariff to be implemented, which will pay 50.05c/kWh  for systems up to 10kw capacity and 40.04c/kWh for up to 30kW capacity, with a system capacity cap at this point of 30kW. The system cap may also be increased later in 2009. The program was rolled out on March 1, 2009.

 

Tasmania net feed in tariff

The current feed in tariff rate for Tasmania is $0.20 per kilowatt-hour

 

Northern Territory net feed in tariff

Alice Springs residents can receive a net feed in tariff rate of $0.45 per kilowatt hour produced. Further information (PDF). In other areas of the Northern Territory, the rate is 14.38c. 

 

Western Australia gross feed in tariff

After previously announcing a rate of $0.60 per kilowatt hour based on a gross model starting some time in 2009, the Western Australian government rescinded the rates and conditions in June 2009 and says it will be instead introducing a net feed in tariff model.

The scheme is due to launch in Western Australia in July 2010 and it is intended that owners of systems installed since the 2008 State Government election will be eligible.

 

Queensland net feed in tariff

The Queensland Government Solar Bonus Scheme commenced on 1 July 2008. Grid connect solar owners  participating in the scheme will be paid $0.44 per kilowatt hour (kWh) for surplus electricity fed into the grid, plus local electricity companies may choose to over additional payments above that.

The 10kW limit applies to each phase of power supply. If you have 3 phase power, it would be possible to set up 3 separate 10kW systems and still get paid the 44c for every kWh fed into the grid. This tariff is open to residential, business and community buildings. 

 

New South Wales feed in tariff

The New South Wales Government originally announced details of the state's feed in tariff incentive (called the Solar Bonus Scheme) on June 23, 2009, but on November 9 2009, made a decision to switch from a net feed in tariff to the gross model; a much more generous arrangement.

solar Feed-in Tariff (FiT) Scheme

• Pays 60 c/KWh on a gross basis
• Maximum system size 10 kW
• Commences 1 January 2010
• Reviewed in 2012 

View Solar Bonus Special Offers