The legacy Transitional and Standard Feed-in Tariff Schemes (TFiT and SFiT) in Victoria have been drawn to a close, impacting about 70,000 solar homes and businesses.
The TFiT was initiated in 2011 to replace the state’s Premium Feed-in Tariff and eventually closed to new applicants on 31st of December 2012.
Till 31 December 2016, the TFiT scheme offered its participants a minimum rate of 25 cents per kilowatt hour for the surplus electricity exported into the grid. On the other end, the SFiT offered a one-for-one rate for the energy fed into the main grid.
Starting Sunday 1 January 2017, participants of both schemes will receive much less-as little as 5c for every kilowatt hour of power fed into the grid. The solar homes and businesses affected by the cessation of the legacy solar FiT will need to shop around for the best electricity retailer offering great feed-in tariff deals.
Notably, those under the Premium Feed-in Tariff (PFiT), which began at the end of 2009 and closed to new customers in late 2011, are not affected by these changes and will continue to receive their credits as per PFiT arrangements which is expected to run until 2024.
The current change in the tariffs will likely compel some Victorians to make the most of their rooftops by installing more solar PV systems and/or adding a storage battery system so as to maximise their solar energy self-consumption.
According to Australian Solar Quotes, a one-stop solar information source, a 5.98kW solar panel with a 6kWh Sonnen storage battery installed in a home in Melbourne can result into a financial benefit of approximately $1,642-$2,107 each year; based on the installation scenario and power consumption profile.
Solar households in Victoria should also embrace themselves for some good times ahead in 2017, when several feed-in tariff rates based on peak, off-peak and shoulder exports will be introduced. According to the Victorian Government, once the changes are effected, the participants will receive about 20 percent more for their power from July.
The new tariff rates are meant to truly reflect the ideal value of the energy exported to the main grid by solar system owners.
New South Wale’s Solar Bonus Scheme is another legacy solar feed-in tariff that ended with the New Year.
IMAGE via CoCreatr