Established under section 94 of the Electricity Industry Act 2000, the payment in lieu of rates (PiLoR) framework allows electricity generators to negotiate payments made to local councils.

It includes a methodology under section 94(6A) to assist in calculating these payments. The methodology includes both a fixed and variable component, the latter based on the nameplate capacity of the power station, and it applies to most types of electricity generators but does not include solar as a fuel source.

A new additional methodology has been introduced specifically for community and smaller commercial solar and wind generators up to 25 MW capacity, which sets a variable charge only based on electricity generation sent to the grid. Solar is now included as an energy source, allowing upcoming solar generation projects to use the PiLoR methodology.

The changes have been made to encourage more community projects and lower access costs for smaller renewable generators while ensuring councils receive enough revenue to help fund local services. Further information is available below:

Indexed amounts for payment in lieu of rates charges

Electricity generators

Electricity2018
to 2019
2019
to 2020
2020
to 2021
2021
to 2022
2022
to 2023
Fixed charge$54,400$54,830$56,312$56,790$59,372
Variable charge (per MW)$1,225$1,235$1,268$1,279$1,337

Solar and wind generators with a nameplate capacity of up to 25 megawatts (MW)

Payment per megawatt hour (MWH) generated
Payment2018
to 2019
2019
to 2020
2020
to 2021
2021
to 2022
2022
to 2023
Commercial
(min amount payable $7,500)
$1.12$1.13$1.16$1.17$1.22
Community
(min amount payable $5,000)
$0.56$0.56$0.58$0.58$0.61

Page last updated: 16/09/22