WEDNESDAY 11 JULY, 2012 |
Victoria Solar Feed In Tariff Update
Victoria's solar feed in tariff incentive - currently under review - could
potentially meet the same sort of fate as Queensland's program soon.
this year, the Victorian government tasked the Victorian Competition
and Efficiency Commission (VCEC) with an inquiry into solar feed-in tariff
arrangements in the state.
The VCEC was to provide a final report to the Government by this Friday. However,
late last month the Treasurer granted a two week extension and the Commission is now due to
submit its final report to Government by 27 July 2012.
It's believed the extension was provided to allow the VCEC time to consider
additional information, some of which was provided by the solar industry.
In May, a draft report from the Commission recommended solar households be
guaranteed a payment of between just
per kilowatt hour for surplus solar electricity exported to the
mains grid, plus whatever amount system owners can negotiate with their
Currently, new solar households are signing up for the Transitional
Feed In Tariff (TFiT)
Participants receive 25 cents per kilowatt hour for surplus electricity
generated by their rooftop solar power systems. With some electricity retailers
offering an additional payment; it brings the total financial incentive paid up
to as high as 33c per kilowatt hour.
The TFiT is available to Victorian households with system capacity of five
kilowatts or less. At the 33 cent rate, a 4.165kW solar
panel system installed in Melbourne
can generate electricity bill savings of
up to $1,643 a year according to Energy
However, how much longer entry into the program will be available given the
looming VCEC report is unclear. Unlike the recent situation in Queensland, it
could potentially be a "sudden death" announcement, all too common
with solar rebate and incentive changes in Australia.
Victorian households have been slammed with multiple electricity price increases
in the last 12 months, strengthening the case for going solar. Electricity costs
in Victoria increased 10% on average on January 1 and electricity
a further reported 8.2 - 14.8% across Victoria's five
distribution areas at the beginning of this month.
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