We are reviewing the 2019-20 minimum feed-in tariffs that your energy company should pay you for renewable power you export to the grid.
Minimum feed-in tariff review 2019-20
Draft decision released4 December 2018
Consultation close13 January 2019
Final decision releasedlate February 2019
We set the minimum feed-in tariffs that your energy company pays you for power you export to the grid via sources including solar panels. From 1 July 2019, we are proposing that retailers will continue to be able to offer solar system owners either a single rate, a time-varying rate or both rates.
Consultation on our Minimum Feed-in Tariff to Apply from 1 July 2019: Draft Decision has now closed and we are considering feedback before releasing our final decision.
How does the minimum feed-in tariff affect me?
Your energy bills give you information on the feed-in tariff your retailer is paying you. Every plan is different, so you should always check to make sure your energy retailer offers you one that best suits your circumstances.
The proposed feed-in tariffs for 2019-20
The draft minimum single rate is 11 cents per kilowatt hour
The single rate feed-in tariff applies regardless of the time of day or day of the week.
The draft minimum time-varying rate is between 8.9 cents and 14.1 cents per kilowatt hour
Under the time-varying tariff, customers will be credited between 8.9 cents and 14.1 cents per kilowatt hour of electricity exported, depending on the time of day and week.
Our draft decision continues the approach we established for the 2018-19 feed-in tariff, giving retailers the flexibility to offer one or both forms of the tariff (either single rate or time-varying). This helps continue the transition occurring in the market, while allowing retailers to offer other feed-in tariffs in response to customer demand.
The draft single rate minimum feed-in tariff is 11 cents per kilowatt hour and applies at all times of the day and week.
The table below shows how the time-varying rate changes at different times of the day and week.
|Period||Weekday||Weekend||Rate: cents per kilowatt hour (c/kWh)|
|Off peak||10pm to 7am||10pm to 7am||8.9 c/kWh|
|Shoulder||7am to 3pm, 9pm to 10pm||7am to 10pm||10.7 c/kWh|
|Peak||3pm to 9pm||n/a||14.0 c/kWh|
How we calculate the minimum feed-in tariff
We calculate the minimum feed-in tariff by forecasting the wholesale price of electricity for the year ahead. The wholesale price varies across different times of the day due to changing supply and demand. As solar panels generally export power between certain hours of the day, we only use the forecast wholesale price for electricity during these ‘solar hours’.
We also consider the costs that are avoided when your retailer buys your solar power instead of power from a large scale generator. This includes the cost of power that is normally lost when it travels long distances through the transmission network from a large central generator and the cost of the fees and charges your retailer would normally pay to the Australian Energy Market Operator when they buy wholesale energy.
The minimum feed in tariff also includes a price that is paid to account for the avoided social cost of carbon associated with a reduction in air pollution due to the energy exported by your solar panels. This rate is currently set by the Victorian Government at 2.5 cents per kilowatt hour (c/kWh).