We are reviewing the 2021-22 minimum feed-in tariffs that your energy company should pay you for power you export to the grid via small renewable energy sources including solar panels.
Minimum feed-in tariff review 2021-22
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Draft decision released17 November 2020
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Consultation closes8 January 2021
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Final decisionFebruary 2021
Overview
We are reviewing the 2021-22 minimum feed-in tariffs that your energy company should pay you for power you export to the grid via small renewable energy sources including solar panels.
We have released a draft decision for consultation.
Wholesale electricity prices for 2021-22 are forecast to be lower
The minimum single feed-in tariff of 7.1 cents per kilowatt hour is 30 per cent lower than the current feed-in tariff of 10.2 cents per kilowatt hour. The minimum time-varying feed-in tariffs are also lower than the current time-varying feed-in tariffs.
The main driver of the lower minimum feed-in tariffs is a significant reduction in wholesale electricity prices forecast for 2021-22.
The main benefit of solar panels is avoiding retail electricity charges
Retail electricity rates are generally much higher than the feed-in tariff rates. It is in solar customers' interest to use as much of the electricity they generate from their solar panels to avoid paying the higher electricity rates. This will reduce their electricity bills far more than exporting the power they generate to the grid.
Consider both feed-in and import rates when choosing an electricity offer
It is important not to focus solely on the feed-in tariff rates when deciding on an electricity plan. Some plans which offer higher feed-in tariff rates may have less competitive prices for the electricity that you consume from the grid, and this may more than offset any benefit from the higher feed-in tariff.
You should think of your energy consumption and generation as a whole when you choose an electricity plan: including both the rates you will pay for the electricity you use and the electricity you export.
Our draft decision
Relevant retailers can offer solar customers the minimum single feed-in tariff and/or time-varying feed-in tariffs for electricity exported to the grid. Table shows the draft minimum feed-in tariffs to apply from 1 July 2021.
Retailers may offer feed-in tariffs higher than the minimum.
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Single FiT rate |
Time-varying FiT rates (cents per kWh) |
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|---|---|---|---|
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All times |
Off peak Weekdays: 10pm-7am Weekends: 10pm-7am |
Shoulder Weekdays: 7am-3pm, 9pm-10pm Weekends: 7am-10pm |
Peak Weekdays: 3pm-9pm Weekends: n/a |
|
7.1 |
7.1 |
6.5 |
11.7 |
When we make the final decision in February 2021 we will update the above feed-in tariffs to reflect the most recent data available at that time.
Customer notification
In our 2020-21 feed-in tariff review, we signalled that we would undertake a consultation on the Energy Retail Code to ensure there is a fair and common approach to notifying solar customers about changes to the minimum feed-in tariff.
We propose that retailers notify their solar customers of annual feed-in tariff rate changes at least five business days before the changes take effect. We also propose that changes to the code should come into effect on 1 June 2021.
We are also interested whether stakeholders have alternative, more effective ways to ensure customers are notified of impending feed-in tariff changes.
Read our draft decision
Have your say
We are interested in hearing your views on our draft decision. Submissions can be made anytime up until 5pm, 8 January 2021.
You can make a submission through our Engage Victoria page.
Public forums
We are hosting two online public forums on Thursday 3 December 2020. Sessions will be held at 12 noon and 6 pm.
Register to attend one of the sessions.
How to maximise the benefit of solar power
The main financial benefit for customers with solar is the savings from using the electricity they generate in their home or business – rather than paying retail electricity rates. Changing the pattern of electricity usage is key to maximising savings.
Energy efficient products, use of a timer and changing your pattern of usage means using more of your solar generated electricity rather than importing from the grid at higher rates, saving you money.