Under Victoria's general renewable energy feed-in tariff (FiT) scheme, FiT rates are set annually by the Essential Services Commission (ESC), Victoria's independent energy regulator. Each year, the ESC determines the fair value of solar generation by considering its wholesale market value, any avoided distribution and transmission losses and the environmental and social value of distributed generation.
There is currently a minimum single-rate FiT and a time-varying FiT for excess electricity fed back into the grid.
What are the feed-in tariff rates for 2020-21?
On 25 February 2020, ESC released its final decision on the 2020-21 FiT rates following a period of consultation from 3 December 2019 to 17 January 2020.
For the financial year beginning 1 July 2020, customers on the current minimum FiT will receive a single-rate of 10.2 cents per kilowatt hour (c/kWh). This is a 1.8 c/kWh decrease compared to the 2019-20 rate.
Retailers can also offer solar customers a time-varying minimum FiT. From 1 July 2020, customers on the time-varying FiT rate will receive an off-peak rate of 9.1 c/kWh, a shoulder rate of 9.8 c/kWh and a peak rate of 12.5 c/kWh. The time-varying rates have all decreased slightly compared with the respective 2019-20 rates.
Victorian electricity retailers are required to offer eligible FiT customers no less than these rates for electricity exported to the grid. Electricity retailers may offer a higher rate than the regulated minimum but are not obligated to do so.
The table below summarises the time-varying minimum FiTs and the times for the weekday and weekend off-peak, shoulder and peak rates:
|Period||Weekday||Weekend||Rate: cents per kilowatt hour (c/kWh)|
|Off-peak||10pm to 7am||10pm to 7am||9.1|
|Shoulder||7am to 3pm, 9pm to 10pm||7am to 10pm||9.8|
|Peak||3pm to 9pm||n/a||12.5|
Why are the 2020-21 feed-in tariff rates lower than those set for 2019-20?
The single FiT for 2020-21 has decreased by 1.8 c/kWh compared to that offered in 2019-20.
This reduction in the single-rate minimum FiT is largely due to the forecast reduction in wholesale electricity prices for the financial year 2020-2021. In addition, the ESC has moved from taking a 40-day average to calculate estimated future wholesale electricity prices to a 12-month average of future prices. This approach is consistent with the approach the ESC used to set the Victorian Default Offer.
The time-varying FiT has also decreased overall. It has decreased by 0.8 c/kWh for off-peak, 1.8 c/kWh for shoulder, and 2.1 c/kWh for the peak rate, respectively.
Given the high share of rooftop solar in Victoria, ESC uses a solar-weighted wholesale electricity price for setting the time-varying FiT, rather than the previously used time-weighted. This approach better reflects the true value of solar exports to the grid. Solar generators have become the dominant source of small-scale renewable generation and tend to produce electricity at the same times during the middle of the day, which lowers prices at those times.
More information about the 2020-21 FiT rates can be found on the ESC website or by calling (03) 9032 1300.
How to apply
To access the minimum FiT, you must have your solar or other type of renewable energy system fully installed, signed off by a licensed electrical inspector and have submitted all the paperwork to your electricity retailer.
- Solar (renewable or low emissions technology) Connection Form
- Electrical Works Request
- Certificate of Electrical Safety
- An accepted FiT contract with your electricity retailer
Once paperwork is submitted, to complete the eligibility process you may also need to have your metering upgraded before feed-in credits can be applied to your account.
Learn more about meters.
The FiT is available to households, community organisations and businesses. To be considered for the FiT, you must:
- have a renewable energy system of less than 100 kilowatts generating capacity in size
- have bi-directional metering in place that measures two-way electricity flows and records them on a half hourly basis
Page last updated: 01/07/20