Feed in tariff for small scale renewables in Victoria starts 1st July

15 Mar

The Victorian Government’s enquiry into a fair feed in tariff has resulted in a determination that from 1st July 2017, 11.3c/kWh will be paid. This will apply to export from systems which are less than 100kW in capacity and includes solar PV, wind, hydro or biomass generators at homes and businesses.  This is a big increase on the 2016 rate of 5c/kWh and may start a trend among solar-friendly State governments. It will be revised annually so unlike Premium feed in tariffs which were fixed for multiple years, the Victorian feed in tariff will fluctuate annually with wholesale prices and the value attributed to the social cost of carbon.

Our design approach in recent years has been to size systems to avoid export due to low feed in tariffs. The increase in feed in tariff will mean larger solar PV arrays can be designed while still preserving overall financial return on investment.  Sites which suit >100kW solar or wind will not be affected by this change, but we are seeing some significant uptake in this space regardless.