Eastern States Feed-In Tariff Increase
The residential net feed-in tariff scheme is a State Government subsidy designed to encourage the installation of renewable energy systems.
Through the Renewable Energy Buyback or Solar Bonus Schemes, homeowners who own renewable energy systems like solar or wind can export any excess electricity they generate to the grid and receive payment from their power provider.
Due to electricity prices rising by an estimated average of 20% in this year alone, energy providers in the eastern states are raising their feed-in tariffs in order to benefit solar and other renewable energy users.
Victorian Solar Feed-In Tariff
The Victorian Essential Services Commission has raised the minimum feed-in tariff amount from 5 cents per kWh or unit, to 11.3 cents per kWh. This 126% increase will benefit the 130,000 households in Victoria who have solar installed.
Lily D’Ambrosio, the Victorian Minister for Energy, Environment and Climate Change, stated that the increased tariffs meant solar households were more fairly compensated for their exported electricity.
“The former Coalition Government reduced the amount Victorian solar households received to 5 cents per kilowatt hour and voted against the bill to make this change,” D’Ambrosio said in a statement.
“This is a great win for the 130,000 solar households all over Victoria, we promised a fairer system and that’s exactly what we have delivered.”
New South Wales Solar Feed-In Tariff
The NSW Independent Pricing and Regulatory Tribunal has recommended a higher feed-in tariff range of 11.6 to 14 cents per kWh or unit, a 100% increase on last year’s benchmark range of 5.5 to 7.2 cents per kWh or unit.
According to IPART Chief Executive, Hugo Harmstorf, the increase is to compensate homeowners who could soon pay twice as much for the power they import from the grid, due to an increase in electricity prices.
"People with solar are like mini-power stations selling power to the grid. The fact is the underlying electricity they export is now worth twice as much.
"We are aiming to give solar customers information so that when they talk to retailers they are better informed to negotiate deals."
The increase will benefit the 350,000 households in NSW already installed with solar.
AGL
Electricity provider AGL is the first in the Eastern States to increase the feed-in tariff amount in response to these recommendations.
General Manager of Sales Marketing, Sandra de Castro, said residential AGL customers in Queensland, NSW and South Australia can expect their feed-in tariff amount to increase by between 77 and 140% from July 1*.
“These increases reflect significant rises in wholesale market prices and could help to offset the impact of higher residential electricity prices.
“We estimate the increases in feed-in tariffs could be worth up to $321 per year in extra savings for some customers, depending on which state they live in and the amount of solar energy they generate and export to the grid.”
*82% in NSW, 77% in Queensland, and 140% in South Australia.
The Bottom Line
With homeowners and businesses in Australia’s Eastern States facing substantial increases in energy bills, there’s never been a better time to install solar.
Infinite Energy can advise your business on the financial benefits of installing solar, including an in-depth financial assessment addressing payback periods, ROIs and finance options. For more information, click here for a no obligation callback.
