The legislation establishes solar feed-in tariffs based on the time of day that electricity generation is occurring in peak, off-peak and shoulder periods. This better reflects current electricity pricing.
Feed-in tariffs will likely rise in July 2017 from the current minimum of 5 cents/kilowatt hour for new solar households to 6.5 cents to 8 cents/kilowatt hour depending on the time of generation.
Damien Moyse, the ATA’s policy and research manager, said that while it was a positive move, it would only marginally improve the economics for solar, and more work needed to be done to reflect the other economic values that solar and distributed generation brought to the energy market.
“We recognise that this is a positive step by the Victorian Government and we welcome the move, but more work needs to be done to fully understand solar’s value in distribution networks and in the wholesale market.”
“We are still a long way, in most states and territories of Australia, from solar households being properly paid and recognised for the value of solar electricity generation in the grid.”