Home: Renewable Energy News: The Case For Going Solar Now In Victoria Strengthens

Renewable Energy News

WEDNESDAY 23 MAY, 2012 |

The Case For Going Solar Now In Victoria Strengthens

by Energy Matters

While home solar power is a solid investment regardless of incentives these days; possible upcoming changes to Victoria's feed in tariff program may mean households in the state will be financially better off making the switch sooner rather than later.

The Solar Credits rebate (which is actually an up front discount) will be reduced by 33% in five weeks; but changes to another important incentive that may significantly impact on system payback time also loom.

Under Victoria's Transitional Feed-in Tariff program (TFiT), solar households receive 25c per kilowatt hour for any surplus electricity generated, plus an additional retailer contribution of up to 8c - totalling 33c per kilowatt hour. Households joining the program now will continue to receive the rate for around 4.5 years; then be moved onto whatever program is in place at that time.

Victoria's feed in tariff arrangements are currently under review. As we reported earlier this week, the Victorian Competition and Efficiency Commission (VCEC) has published draft recommendations that propose solar households connecting under a new program be guaranteed a payment of between just 6-8 cents per kilowatt hour, plus whatever additional rate they are able to negotiate with their electricity distributor.

It's this latter element causing concern for the Clean Energy Council; which has stated it will be "virtually impossible for consumers to actually get that additional payment".

According to information published on Energy Matters' web site, under the current TFiT arrangements, a 1.52kW rooftop solar panel system installed in Melbourne can generate electricity bill savings of up to $600 annually. Larger systems offered by the company can wipe out a household's electricity bill altogether. Combined with the current Solar Credits level, these returns translate to a very rapid system payback time.

Should the proposed guaranteed 6-8 cents be applied to new connections made under a revised Victorian program and the CEC's concerns regarding any additional amount realised; the payback period could be greatly extended.

Melbourne-based Energy Matters is currently offering households throughout Victoria special solar package deals that can be secured with a 10% deposit. The company is also offering a 5% deposit payment plan option.