New low-cost way to have solar installed at home

Victoria has experienced a growth in new alternative energy providers wanting to offer renewable energy directly to customers rather than through the electricity grid.

The Victorian Government is committed to encouraging the uptake of renewable energy by more Victorians through enabling new alternative energy selling business models.

The Government has recently updated the regulations around small-scale renewable energy via the General Exemption Amendment Order, and has now made it possible for households to access roof-top solar panels via solar power purchase agreements (PPAs).

Businesses can establish solar PPAs in different ways, but in principle it requires the solar company and the householder to enter into a long-term agreement to purchase power from the installed system. The householder pays the solar company for the metered electricity generated by the panels, and the solar company can on-sell any excess solar electricity to the grid.

This move shows that Victoria is open for business for solar PPAs while the Government completes its exemptions review and the Essential Services Commission (ESC) completes its licensing review. The Department will continue to work closely with the ESC to ensure that the outcomes of both reviews align.

A copy of the media release can be found on the Premier's website.

The amending order can be accessed on the Victorian Government Gazette website as Special Gazette Number S393 Dated 8 December 2015.