Victorian solar panel owners could see the feed-in tariff they get for supplying energy into the main grid nearly triple this year. That’s if the Victorian Essential Services Commission successfully introduces a transition to a “time-varying” feed-in tariff. Community groups have welcomed the potentially higher feed-in tariff.
The payment is currently a minimum of 11.3 cents per kilowatt hour. However, the new tariff would pay more during periods of the day when electricity demand rises.
If introduced from July, the Victorian “single-rate” tariff would return a minimum of 9.9 cents per kilowatt/hour.
The time-varying tariff would then return between 7.2 cents and 29 cents, depending on the time of day.
Community solar group embraces the new higher feed-in tariff
Energy solar group MASH Community Solar, a Castlemaine-based non-for-profit operating a community bulk-buy scheme, welcomed the proposal.
According to the Bendigo Advertiser, project officer Jo Kaptein said changes would encourage more people to install solar.
“Particularly big systems on west-facing roofs, as the peak will be 3pm to 9pm each weekday,” she said.
“Given the high level of competition in the Victorian electricity market it is likely that some, if not all retailers, will offer the [time-varying] tariff.”
More incentive to install rooftop solar
Environment Victoria campaigns manager Nick Aberle said there were now two incentives to install solar. Firstly, the cost of rooftop solar systems is coming down. Secondly, solar feed-in tariffs is increasingly driven by peak demand on the grid.
“The overwhelming majority of Victorians want to do something about climate change and rooftop solar helps them do that. We have poll after poll telling us that,” he said.
Dr Aberle believes solar panels could also help reduce the strain on the grid at moments of peak demand. He said summer was a time when ageing coal-fired stations could run into problems.
“They fail us in hot weather when we need them the most, and that’s when rooftop solar is at its best,” he said.
The Essential Services wants feedback on its tariff proposals. Submissions should be sent to
