The Andrews Labor Government is introducing a fairer feed-in tariff scheme for solar households in Victoria.
Minister for Energy, Environment and Climate Change Lily D’Ambrosio today introduced multiple feed-in tariff rates based on the time-of-day –peak, off-peak and shoulder – which better reflects current pricing.
The proposed changes will enable renewable energy feed-in tariffs – the amount people are paid for the solar and wind power they produce for the electricity network – to be set in a fairer way.
Under the revised scheme, solar households will also be rewarded with a payment for their environment value.
The revised scheme follows the Labor Government accepting the major findings of the Essential Services Commission’s Final Report into the Energy Value of Distribution Generation, which was tabled in Parliament in September.
As recommended, annual minimum rates for feed-in tariffs will permanently move from calendar years to financial years to allow retailers time to adjust their systems. This will commence from 1 July 2017.
This was the first of two Essential Services Commission’s Reports, some of the findings won’t be adopted as they would add unnecessary complexity into the feed-in tariff scheme.
The second part of the review will look at how investment in local distributed generation can reduce future costs of network poles and wires. This report is expected in February 2017.
Quotes attributable to Minister for Energy, Environment and Climate Change Lily D’Ambrosio
“Victorians should be fairly compensated for the power they generate – plain and simple.”
“This is the first time the tariff has been increased in the last 6 years, rising by approximately 20 per cent. It fell every year under the Coalition.”
“Households will now be compensated through the most cost effective and fairest system available, which is through a time-of-use feed-in tariff.”