Are Solar Feed-In Tariff Going Up To 29c?!
Draft decision by the The Essential Services Commission have highlighted 2 options for solar feed-in tariff. One of them corresponds to 29c/ kWh feed-in tariff when consumers sell power back to the grid from 1st July 2018 onwards.
The Essential Services Commission regulate Victoria’s energy, water and transport sectors, and administer the local government Fair Go Rates system. Their work also includes administering the Victorian Energy Efficiency Target scheme, which aims to reduce greenhouse gases by making energy efficiency improvements more affordable for consumers.
This is a significant increase considering awhile ago the tariff was sitting just over 5 cents in Victoria.
It is expected that the decision will allow customers to choose between retailers depending on the type of FiT retailers offer based on the 2 options below as minimum:
This reflects the underlying value of electricity based on the wholesale market's heavy consumption period, particularly as consumers typically using more electricity as a result of air conditioning demand, dinner time, heating demand etc.
Peak times: 3pm-9pm weekdays
The Commission have asked and accepted submissions in response to its decision, including from a number of electricity retailers (https://www.esc.vic.gov.au/document/energy/56095-minimum-feed-tariff-2/).
What does it mean to you/ your business when and if this gets finalised?
- You can potentially get better return on solar as your export becomes more valuable - i.e. better Return on Investment, saving and payback for solar PV!
- The economics and savings behind solar performance specific to your property/ business may change - i.e. if solar was not viable for you, then it could be viable now
- The design and sizing behind battery solution may change
- West-facing panels could be more beneficial than ever before
Many home owners and businesses have reviewed multiple solar quotes but have not had the confidence to go ahead. The factors above coupled with the considerable fall in PV system and install prices and increase in module efficiency over the last few years mean that it's a great idea to re-consider solar now.
Talk to us if you want us to save you time, stress and money by sourcing you and compare the best deals on quality solutions.
