Riddells Creek Sustainability Newsletter

29 June 2009

Victorian Feed-in Tariff

Filed under: Sustainability — Lyn H. @ 10:32 pm

The Labor Government’s feed-in tariff legislation was passed by the Victorian Parliament on 25 June 2009.

The government states that amendments were made “in response to input from responsible environment groups” which demonstrates that our combined efforts to contact politicians and build community support for a good feed-in tariff were successful.

Well done ATA, Environment Victoria, Climate Action Groups, Sustainability activists and everybody who spent time and considerable effort on this campaign.

The final structure of the Victorian feed-in tariff includes:

· 60 cents credit per kilowatt hour for energy fed back into the grid within that year. This is about four times the current cost of electricity in Victoria.

· The tariff is paid to residences, community organisations and small businesses with energy consumption less than 100 MWh a year

· An array size limit of 5kW applies

This outcome is a significant improvement on the feed-in tariff initially proposed by the government. Amendments introduced in the Upper House which improved the scheme include:

· extending participation to community organisations and small businesses with energy consumption less than 100 MWh a year (they were intially excluded)

· increasing the array size limit from 2kW to 5kW

Two electricity retailers have also provided letters which state they will provide cash or rollover credits for energy produced, rather than these credits “expiring” as was initially proposed.

The additional amendment put by the Greens for the tariff to be paid on the gross output (rather than the net output) was not accepted.

The tariff does not apply to large scale solar or wind either, so there is potential to further improve this legislation in the future.

On balance, this is a significant improvement over the legislation initially proposed.

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