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. For most generators, the methodology includes both a fixed and variable component, the latter based on the nameplate capacity of the power station.

For community and smaller commercial solar and wind generators up to 25 MW capacity, the methodology sets a variable charge only based on electricity generation sent to the grid (subject to a minimum amount payable). This aims to encourage more community projects and lower access costs for smaller renewable generators while ensuring councils receive enough revenue to help fund local services.

The methodology indexes the PiLoR charges each financial year. Further information is available below:

Indexed amounts for payment in lieu of rates charges

Electricity generators

PiLoR charge component2018-19 2019-20 2020-21 2021-22 2022-23
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
Generator type 2018-19 2019-20 2020-21 2021-22 2022-23
(min amount payable $7,500)
$1.12 $1.13 $1.16 $1.17 $1.22
(min amount payable $5,000)
$0.56 $0.56 $0.58 $0.58 $0.61

Page last updated: 08/11/22