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Victoria's Solar Feed In Tariff Draft Legislation

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Started 3 years ago by Sunshine
Latest reply from Sunshine

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tariff

Sunshine
Member

Bad news for Victorians considering a larger than 2kW system..
An extract from Energy Matters website today.
http://www.energymatters.com.au/index.php?main_page=news_article&article_id=368

Many Victorians who are enthusiastic to invest in solar power systems but holding off until a feed in tariff program is implemented in the state might be very disappointed by proposed legislation introduced by Victoria's State Government.

Under the Electricity Industry Amendment (Premium Solar Feed-in Tariff) Bill 2009, home owners who have installed a grid connect solar power system will only receive 60c per kWh for surplus electricity generated as a credit on their bill, rather than as a cash payment as is the case in other states.

Furthermore, if the system owner generates credit from the feed-in tariff exceeding the cost of their electricity consumption during the billing period, the additional credit is rolled over to the next billing period. Any credit not used within 12 months will be wiped.

Any accumulated credit will also be deemed null and void if the system owner changes electricity retailers or at the end of the scheme.

Posted Monday 23 Mar 2009 @ 12:09:45 pm from IP #
ghostgum
Member

Where is the draft legislation? Do the feed-in credits offset just electricity usage, or do they also offset the standing electricity service charges?

Posted Monday 23 Mar 2009 @ 11:23:23 pm from IP #
Sunshine
Member

Draft legislation is here.
http://www.dpi.vic.gov.au/dpi/dpinenergy.nsf/LinkView/110E561595F6140CCA25757C000A9F2D4CAC723B1D538D66CA25740C000D2004/$file/Premium%20FiT%20Fact%20Sheet.pdf

There is no mention of being able to use your power credits to offset electricity service charges.

The article mentions "a household installing an average sized system (1.5 kilowatt) is expected use the credits to offset its power bills within the 12 month period".
Hence, for the average Victorian house, there is no incentive to install a larger than 1.5kW system, unless you use more power than average.
A bad idea, as there is no incentive to use less power really.

Posted Tuesday 24 Mar 2009 @ 8:45:55 am from IP #
norbert
Member

As far as I'm concerned Brumby and his mob have demonstrated that they have now completly lost the plot.Maybe I've got this wrong but to my understanding I get a 60 cents credit for every surplus kw/h I feed into the grid which is worth some 4 kw/h (15 cents kw/h.)If I don't use the credits within 12 months then I shot myself in the foot by having fed free green electricity into the grid for no return.
I might as well get a second fridge,dishwasher etc.so I use up my own electricity generated by solar panels I've spent some $ 25.000 on.How does this rediculous scheme promote energy conservation and reducing greenhouse gases?
Fed up mate!

Posted Tuesday 24 Mar 2009 @ 8:52:13 am from IP #
rsigmund
Member

Interesting thread

Posted Wednesday 25 Mar 2009 @ 1:53:07 am from IP #
rsigmund
Member

Analysis of

Posted Wednesday 25 Mar 2009 @ 3:50:06 am from IP #
ghostgum
Member

Taking the figures from above, $2.40 saved per day is $876 per year, and a 1kW system costs about $13000. With current $8000 rebate + selling 18 REC @ $40 each this gives a payback period of 5 years. Except that the assumption that all power generated during the day is exported, and none consumed, is not correct. With a system this small, you actually export very little and the payback time is about 12 years.

Using the new phantom REC system from 1 July 2009, and assuming $40 per REC, rebate is $3600, so payback period is 11 years. If you use any power at all during the day, the payback period will be longer, and I estimate this at 25 years.

When taking daytime usage into account, a 1.5kW system is slighty better at 14 years.
Larger systems have a longer payback time, and only make sense if you use the normal feed-in rate rather than the premium feed-in rate.

Posted Wednesday 25 Mar 2009 @ 4:28:05 am from IP #
rsigmund
Member

Thanks ghostgum,

Your post is interesting - would like to now how you arived at the amount of power used during the day...

Also it is interesting how the 'credit' part of the system directs the incentive effect of 'Solar Credits'.

I can almost imagine a group of industry types brainstorming the question of "If we must have a FIT how can we proctect demand?"

Posted Wednesday 25 Mar 2009 @ 5:15:50 am from IP #
ghostgum
Member

I used a simplistic calculation that doesn't take into account variations in power generation during the year, so the results may be wrong.
Assume 16kWh per day used. PV system is 1kW, and an average of 4 hours of strong sunlight, so 4kWh per day generated. Of the 16kWh usage, 4/24 of this will be during the time that the PV system is generating power. So 2.67 kWh of usage occurs during the time that the 4kWh is generated, leaving a net power of 1.33kWh. 1.33kWh * 0.60 $/kWh feed in is $0.80 per day. 16 - 1.33 = 14.67kWh bought from the grid at $0.16 $/kWh is $2.35 per day. So net cost per day 2.35 - 0.80 = $1.55. If you didn't have PV, then daily cost 16 * 0.16 = $2.56. Savings per year = (2.56 - 1.55) * 365 = $368. 1kW system costs about $9400 ($13000 - $3600 REC [4/5 are phantom]), so payback time 9400 / 368 = 25 years.

Posted Wednesday 25 Mar 2009 @ 10:39:47 pm from IP #
Sunshine
Member

Ghostgum,
I got my first electricity bill today, and yes they do offset the service charge and ambulance levy here in Qld.
I thought I may still have to pay both the service charge and ambulance levy and have a higher refund cheque at the end of 12 months, but they are making it easy, as I don't have to pay anything.
In Victoria it may be different, just ask your electricity supplier..

Posted Tuesday 31 Mar 2009 @ 12:23:04 pm from IP #
petanque
Member

What about tax?

If you are paying 30% marginal tax to get $X don

Posted Wednesday 1 Apr 2009 @ 2:12:45 am from IP #
Sunshine
Member

Petanque,

Income earned from solar credits is tax free.
As my property has no more gas bill(solar hot water) and have no power bill, and earn money from selling power to the grid, that would be a definate selling feature and add value to any home.

Posted Wednesday 1 Apr 2009 @ 1:29:01 pm from IP #

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