Victorian Feed-in Tariff Announcement
01 Sep 2011
Today the Victorian Government announced the 100MW capacity cap for the Premium Feed-in Tariff (PFIT) scheme is soon to be reached. In anticipation of this, they have proposed a new scheme called the Transitional Feed-in Tariff (TFIT) which will commence on 1 January 2012.
Those who have already paid a deposit to purchase a PV system may still be eligible for the PFIT. Customers must have lodged the following:
- Solar Connection Form;
- Electrical Work Request;
- Certificate of Electrical Safety; and
- Contract for the PFIT with their electricity retailer, before 30 September 2011 to be considered for the PFIT. Existing PFIT participants will be unaffected.
Victorian Feed-in Tariff AnnouncementNew PV customers will be eligible for the TFIT, which offers a net 25c/kWh for electricity fed into the grid. All households with PV systems with capacity of 5kW or less will be eligible. The scheme is expected to have a capacity cap of 75MW, offering payments until the end of 2016. The TFIT legislation is expected to be tabled in parliament in October this year.
The Government has requested the Victorian Competition and Efficiency Commission to report on a “market-based” gross feed-in tariff scheme, expected in 2012.
Over the last six months an average of about 5,000 systems per month have created STCs. The Government claims that the TFIT rate of 25c/kWh will allow customers to pay off their systems within 10 years from purchase. Industry was expecting a higher rate so the 25c/kWh is a little disappointing, as it is only slightly above the retail rate for purchasing electricity.