Proposed Feed-In Tariff reductions for Victorian consumers
Once again it appears that the rate of Feed-In Tariff will be dropped from 8 cents per kilowatt hour (c/kWh) for all new solar power systems. The Essential Services Commission (ESC) has released a draft decision paper in May 2014, Minimum Electricity Feed-in Tariff to apply form 1 January 2015, which may see the Feed-in Tariff (FiT) drop to as low as 6.2 c/kWh.
The feed-in tariff currently offers a minimum of 8 c/kWh for 2014 for all eligible forms of renewable energy such as solar, wind, hydro or biomass, with a system size less than 100 kilowatts for excess electricity fed back into the grid. Some electricity retailers may be offering a higher rate but are not obligated to do so.
The rate for the Feed-in Tariff is to be reviewed and updated annually until 2016 by the Essential Services Commission and the cents per kilowatt hour rate is based on the adjusted wholesale price of electricity.
A copy of the draft decision can be found at http://www.esc.vic.gov.au/getattachment/30ba3a48-00db-4256-a7da-c80f67cd0b28/Draft-Decision-Minimum-Electricity-Feed-in-Tariff.pdf.