Solar premium feed-in tariff

Existing customers

Eligible properties with an effective PFIT contract will continue to receive this rate until 2024, provided they do not add extra solar panels to their system.

Switching electricity companies

You can switch electricity companies or contracts and continue to receive the PFIT once you have established your eligibility. Before switching, check if there are any exit fees under your existing contract.

Adding extra solar panels

You will become ineligible to continue receiving the premium rate if you add additional solar panels, boosting your generating capacity after scheme closure, even if the overall system size remains 5 kilowatts or under. This ensures the cost of the scheme for all Victorians does not increase.

If you have an oversized inverter (for example a four kilowatt inverter with 1.5 kilowatts of solar panels) you will still forfeit your access to the premium rate if you upgrade your existing generation capacity after scheme closure. The existing generating capacity is based on the total nameplate capacity of the panels as measured under standard conditions by the manufacturer.

Suppose you would like to install additional panels or another form of renewable energy system and forfeit your premium rate. In that case, you may instead be eligible to apply for the minimum feed-in tariff.

Replacing damaged panels

You can replace existing panels for maintenance reasons, for example, due to storm or fire damage, without losing the PFIT. You just need to make sure the replacement panels do not exceed the original generating capacity of your system. Net metering must continue.

Renovation or demolition of your house

You can remove your solar panels due to renovations or the demolition of a house without forfeiting the PFIT. Under the PFIT, as long as the capacity of your solar panels post-renovation or demolition is equal to, or less than, the capacity before the renovation/demolition, you can maintain your eligibility.

Additionally, the solar PV system must continue to be net-metered after the work has been completed. 'Net-metered' means that the electricity generated by the solar PV system at the property is offset by the electricity consumed at the property. For residential properties, the newly renovated or constructed house will still need to be your primary place of residence

There may be a requirement for you or your installer to re-lodge the Certificate of Electrical Safety with the distribution business after the panels have been reinstalled. There may also be a requirement for other paperwork to be re-lodged including the solar connection form and the Electrical Works Request. We advise that you check with the relevant distribution business regarding this.

Moving house

The PFIT is linked to the property where the solar panels are installed, so when moving house you cannot take the PFIT with you. But any house which is signed up to the premium scheme will remain eligible until 2024, even if the house is sold and new residents move in.

Adding battery storage

Solar customers that install small-scale batteries as part of their current PV system will continue to be eligible to receive feed-in tariffs for the electricity generated and exported by their system to their retailer.

This also means that you can install a battery and still receive the PFIT as long as you maintain your eligibility requirements as outlined in your contract.

Introduction of Premium Solar Feed-in Tariff

The Premium Solar Feed-in Tariff was introduced on 1 November 2009 to provide extra support for people installing rooftop solar power and was closed to new applicants in late 2011..

Premium rate credited to solar customers under the scheme

A minimum of 60 cents per kilowatt hour is credited for any excess electricity fed back into the state electricity grid.

Tariff calculation

The PFIT scheme is a net metered scheme. This means that a household's total electricity consumption is offset against the total electricity generated by its solar panels. This is calculated every half hour, with the premium tariff paid for every excess kilowatt of energy fed back into the grid.

To accurately measure a household's net electricity generation, your electricity company will most likely move you to peak and off-peak pricing for your electricity. Check with your retailer to see what changes you can expect to see on your bills, particularly if you have any dedicated off-peak loads.

Scheme end date

Signed-up eligible customers will receive the premium solar feed-in tariff until 1 November 2024. Once the scheme ends in 2024, retailers are no longer obliged to pass on these credits. Check the terms and conditions in your contract for a related clause.

Differences between an interval and smart meter

Interval meters are not necessarily 'Smart Meters' - there are different meter types.

However, both Interval and Smart Meters measure the imports from and exports to the state's electricity grid on a half-hourly basis, allowing eligible customers to receive feed-in tariff credits.

Smart Meters are different because they can be monitored remotely, removing the need for estimated meter reads.

Installing solar (PVs) or other forms of renewable energy

Smart Meters are the standard metering in Victoria. They were designed to be reconfigurable so that any solar or renewable energy customer can access feed-in tariffs without needing a separate meter.

Old-style (analogue) meters are unable to safely handle two-way energy flows and must be replaced upon the installation of solar PV or another form of renewable energy.

Smart Meters are designed to also function with solar and other renewable energy systems and can measure two-way power for feed-in tariffs. However, you will most probably need to arrange for your electricity distributor to reconfigure your meter to switch on the import/export functionality. In many cases, this can be done remotely, saving you money.

Your retailer must be contacted for your solar PV installation to proceed and can make the arrangements to have your smart meter reconfigured. Your Smart Meter is part of the electricity infrastructure operated by Victorian electricity distribution businesses.

Are solar feed-in tariff rates the same across all electricity retailers?

All electricity retailers with more than 5,000 customers must offer eligible customers a minimum credit per kilowatt hour for any excess electricity exported to the state grid.

The PFIT scheme had a guaranteed minimum of 60 cents. Review the current minimum feed-in tariff rates. Some retailers may offer over and above this amount. It is important to shop around and understand all of the details of a solar feed-in tariff contract.

I have heard that retailers can extinguish any excess credits I have not used after 12 months. Is this true?

Yes, however it will not affect the majority of customers as any excess credits will generally be used over the 12-month period.

Under the legislation, retailers can extinguish excess credits that have accrued and are now older than 12 months. But, not all retailers are taking this approach and some also provide you with the option of a direct payment rather than ongoing bill credits.

Is my solar feed-in tariff credit indexed?

No, a solar feed-in tariff credit is not indexed.

A minimum of 60 cents per kilowatt hour for excess electricity fed back into the grid has been set for the 15-year lifetime of the Premium Feed-in Tariff scheme.

Why does the scheme have contracts and terms and conditions?

The contract and its terms and conditions are only there to protect you - the consumer. It sets out the obligations of all parties involved and makes sure that all information is available so you can compare offers and negotiate better contract arrangements with your electricity retailer.

Before you can start being credited for solar power you must sign a contract with your electricity retailer.

The contracts are generally based on conditions contained in the Energy Retail Code and provide you with a number of protections, including:

your rights to terminate the contract
your rights in asking for your bill to be reviewed
how any issues with crediting amounts shown on bills will be handled
how credits will be applied to your bill

Before signing, you should always read through and familiarise yourself with your electricity retailer's terms and conditions. If you don't understand the document, ask your retailer for more help and advice.

Can I change the way I receive my feed-in tariff so that my Centrelink payments are not reduced?

You will need to contact your electricity retailer – the company that sends your power bill – and ask them if you can do this under your individual electricity contract arrangements.

An offer to a customer must not require that a customer buy gas from the retailer, in order for that customer to be eligible to enter into an electricity premium solar feed-in tariff contract with that retailer.

(For the avoidance of doubt, the Department of Environment, Land, Water and Planning would not recommend to the Minister for Energy, Environment and Climate Change and Solar Homes that an offer be referred to the Essential Service Commission under section 40I of the Electricity Industry Act 2000 by reason only that the offer required a person be an electricity customer of the retailer in order to be eligible to enter into an electricity premium solar feed-in tariff contract with that retailer).
An offer to a customer must state that the retailer will, as a minimum, credit the customer for any qualifying solar energy generation electricity supplied under the premium solar feed-in tariff contract with the same frequency as the customer is billed for electricity supplied to the customer by that retailer.
An offer must:
1. identify all foreseeable additional costs related to the premium solar feed-in tariff contract that the customer will pay and, for each cost, must either state the amount or specify that the retailer will inform the customer of the amount on request prior to entering the contract
2. state whether any available or assignable Renewable Energy Certificates relevant to the premium solar feed-in tariff contract is part of the premium solar feed-in tariff contract offer.
An offer to a customer must as a minimum: specify that the retailer will credit the customer, for electricity supplied by the customer under a premium solar feed-in tariff contract, at a rate not less than $0.60 per kilowatt-hour, including any GST if applicable.
1. if requested by the customer, the retailer will make a request to the relevant distributor to connect the customer's qualifying solar energy generating facility to the distributor's distribution system as soon as practicable after the customer satisfies clause 1 of the Energy Retail Code with respect to the premium solar feed-in tariff contract. The request will include details of any necessary metering. The retailer will make the request no later than the next business day after receiving from the customer all documentation required under theElectricity Safety Act 1998 and all documentation reasonably required by the retailer or the relevant distributor. Documentation must include details of any appropriate network tariff reassignment
2. unless the customer gives explicit informed consent, the retailer will base a premium solar feed-in tariff credit on a reading of the customer's NEM-compliant meter that records the supply of electricity from the customer to the distribution system, and in any event, the retailer will use its best endeavours to ensure that the meter is read at least once in any 12 month period. For the avoidance of doubt, a retailer does not breach this criterion if the retailer is unable to read a meter in any relevant period as a result of the customer breaching criterion 5(j) or some other event outside the retailer's control
3. if the retailer is not able to reasonably or reliably base a premium solar feed-in tariff credit on a reading of the meter, the retailer will not apply for credit unless the relevant distributor estimates the generation in accordance with applicable regulatory instruments
  the retailer will not extinguish premium solar feed-in tariff credits where the premium solar feed-in tariff credit is not based on an actual meter reading and/or where the bill for the billing period that the credit is associated with has not been issued to the customer.
  For the avoidance of doubt, a retailer does not breach this criterion if the retailer is unable to read a meter in any relevant period as a result of the customer breaching criterion 5(j) or some other event outside the retailer's control
4. the retailer will review a premium solar feed-in tariff credit to a customer at the customer's request, to be conducted on the basis specified in clause 6.1 of the Energy Retail Code
5. if the retailer seeks to bill a customer to make up over crediting the customer for electricity supplied by the customer, the retailer is to proceed on the basis specified in clause 6.2 of the Energy Retail Code
6. if the retailer has under-credited a customer for electricity supplied by the customer, the retailer will credit the amount to the next bill issued to the customer after the retailer becomes aware of the under crediting proceeding on the basis specified in clause 6.3 of the Energy Retail Code.
7. if an event occurs which is outside the reasonable control of the retailer or a customer (i.e. force majeure event) and the retailer or the customer breaches their premium solar feed-in tariff contract due to this event only, the breach is to be dealt with on the basis specified in clause 18 of the Energy Retail Code
8. the terms and conditions of the premium solar feed-in tariff contract between the customer and the retailer may only be varied by agreement in writing between the customer and the retailer
9. the customer's explicit informed consent is required to vary from the provisions listed in this Criterion number 5
10. the customer will allow the retailer, the responsible person or the retailer's or responsible person's representative safe, convenient and unhindered access to the relevant address and to the meter that records the supply of electricity from the customer to the distribution system, for the purpose of reading the meter and for connection, disconnection, reconnection, maintenance and repair. The retailer, the responsible person, or the retailer's or responsible person's representative will carry or wear official identification and, on request, will show that identification to the customer
11. the customer will inform the retailer as soon as possible of any relevant change to contact details
12. the premium solar feed-in tariff rate will be set at not less than $0.60 per kilowatt hour for the duration of the premium solar feed-in tariff contract
13. on request, the retailer will provide the customer with reasonable information on any premium solar feed-in tariff offers the retailer may make to the customer. The information must be given within 10 business days of the customer's request, and if the customer requests it, in writing
14. the retailer must retain a customer's historical premium solar feed-in tariff crediting data for at least two years, even if the customer's contract with the retailer to supply electricity to the distribution system and the customer's contract to buy electricity from the retailer may have terminated
15. the retailer must process a customer's request for historical data relating to a premium solar feed-in tariff contract in the same manner as a request for historical data relating to a supply of electricity to the customer under clause 27.2 of the Energy Retail Code
16. a complaint by a customer in relation to a premium solar feed-in tariff contract will be handled by the retailer in accordance with the relevant Australian Standard on Complaints Handling or the "Benchmark for Industry Based Customer Dispute Resolution Schemes" published by the Department of Industry, Tourism and Resources (Cth). The retailer will proceed in the manner specified in clause 28.2 of the Energy Retail Code
17. the customer and retailer may agree on a commencement date for the premium solar feed-in tariff contract, but the contract does not commence until the customer has given explicit informed consent
18. a customer may terminate a premium solar feed-in tariff contract with the retailer without notice and if the premium solar feed-in tariff contract is a fixed term contract or an evergreen contract, the retailer may impose an early termination fee in the manner specified in clause 24.1(d) of the Energy Retail Code. Despite the notice period, the termination does not become effective until
  1. if the customer and the retailer enter a new feed-in contract, the expiry of any cooling-off period in respect of the new feed-in contract
  2. f the premium solar feed-in tariff contract is terminated because the customer wants to enter a feed-in contract with another retailer, the date when the other retailer becomes responsible for the feed-in contract
  3. f a contract for the supply of electricity to the customer is terminated with regard to a relevant supply address having been disconnected, the date when the customer no longer has a right under the Energy Retail Code to be reconnected: (whichever occurs last)
19. the retailer must not terminate a premium solar feed-in tariff contract with a customer unless the retailer and the customer enter into a new feed-in contract, or the customer has transferred to another retailer in respect of the address relevant to the premium solar feed-in tariff contract, except in the circumstances specified under assessment criteria 5x), 5y), and 5aa) or 5ab)
20. if the premium solar feed-in tariff contract between the retailer and a customer is a fixed term contract:
  1. the retailer will notify the customer of the following information between one and two months before the expiry date:
  2. the date that the premium solar feed-in tariff contract is due to expire
  3. the options available to the customer
  4. the terms and conditions that will apply after that date if the customer does not exercise any other option
  5. the premium solar feed-in tariff contract between the retailer and the customer will continue after the expiry date on the terms and conditions notified, without further need for a written agreement, provided the terms and conditions have taken effect in accordance with section 40H of the Electricity Industry Act 2000
21. where the premium solar feed-in tariff contract provides for an amount payable by a customer for the customer's breach of the premium solar feed-in tariff contract, it will either state the amount or include a simple basis for determining that amount. The contract will include provisions consistent with clause 31(b) and (c) of the Energy Retail Code
22. a notice, consent, document or other communication given by a retailer under a premium solar feed-in tariff contract will be given in a manner specified in clause 32 of the Energy Retail Code
23. a retailer may only assign the retailer's premium solar feed-in tariff contract with a customer with the customer's consent unless the assignment forms part of the transfer to the same third party of all or substantially all of the retailer's retail business.
24. the customer must notify the retailer within 14 business days if the customer's photovoltaic generating capacity exceeds 5 kilowatts i.e. the customer's photovoltaic system has or is changed to, an installed or name-plate generating capacity exceeding 5 kilowatts
25. where the customer is a residential householder, the qualifying solar energy generating facility must be located at the customer's principal place of residence. Residential customers, small business customers or community organisation customers are only eligible to receive the premium feed-in tariff for one solar energy generating facility per premise under the premium solar feed-in tariff scheme. For the avoidance of doubt, this assessment criteria is in accordance with the definition of a 'qualifying customer' as specified under section 40F(1) (b) of the principal Act
26. where the customer is a small business or community organisation, the retailer may terminate the premium feed-in tariff contract once the customer's annual consumption of electricity exceeds 100 megawatt hours
27. the retailer may terminate the customers' premium feed-in tariff contract once the fifteenth anniversary of the scheme start day has been reached i.e. once the scheme has been in place for 15 years. The premium solar feed-in tariff contract must specify that this is the case;
28. The feed-in tariff terms and conditions coincide with the Electricity Industry Amendment(Premium SolarFeed-in Tariff) Act 2009. Terms and conditions may be subject to change as a result of future legislative amendments to the Electricity Industry Amendment(Premium SolarFeed-in Tariff) Act 2009.

Page last updated: 25/11/22