Understanding Rebates

 Local and Federal Rebates for Residential / Small-scale Solar.  If you are looking to get solar, wind or both installed on your home or business then there is support available to you from the Federal Government to help reduce the initial capital outlay. In addition depending on which State or Territory you live in, you may be eligible for further State Government rebates too.

Federal Rebate Schemes
The Federal assistance system currently in place to assists with the initial cost of a renewable energy system is the Small-scale Renewable Energy Scheme; this creates a financial incentive for owners to install eligible small-scale installations such as solar water heaters, heat pumps, solar panel systems, small-scale wind systems, or small-scale hydro systems. It does this by legislating demand for Small-scale Technology Certificates (STCs). STCs are created for these installations according to the amount of electricity they produce or displace. Liable entities have a legal requirement to buy STCs and surrender them on a quarterly basis.

Victoria net feed in tariff

3 x Multiplier (Solar Credits)

The volume of STCs generated is dependent on the size and output your installation as well as your geographical region. Currently the first 1.5kW worth of STC’s is subject to the Solar Credits mechanism whereby (until July 2012) there is a 1:3 multiplier applied, the remainder of STC’s stay at the 1:1 ratio. The Solar Credits are only applicable once to a location, the STC’s though can be increased if the systems are added to in the future

This rebate offers thousands of dollars in savings depending on the size and location of installation and applies to new installations of small-scale Clean Energy generators eligible under the scheme. The basic parameters of the rebate are:

1.Solar credits will apply to the first 1.5 kilowatts (kW) of capacity installed;
2.Generation from capacity above 1.5 kW will still be eligible for the standard 1:1 rate of STC creation;
3.STCs accompany Clean Energy power equipment purchases and can be traded for cash (solar and wind);
4.The multiplier credits will only apply to the first small-scale generation system installed at an address;
5.The multiplier is set to diminish over the next three years until all generated STC's are at 1:1 only.
State and Territory Solar Feed-In Tariffs
Australia currently has no country wide feed in tariff program, all schemes are designed and implemented on a state by state basis. The following matrix shows the basic outline of various state based schemes on offer:

Terminologies:

Gross or net feed in tariff:

A net feed in tariff, also known as export metering, pays the PV and/or wind system owner only for the surplus energy they produce; whereas a gross feed in tariff pays for each kilowatt hour produced by a grid connected system. It's a very important difference.

Victoria net feed in tariff:
On September 1 2011, the Victorian Government announced the Premium FiT would be closed to new applications from the end of September 2011. The Government is establishing a new transitional scheme that pays 25c per kilowatt hour for surplus electricity. The new program will commence January 1, 2012 and will available for 5 years.

Victorian households with solar power systems have been paid a feed in tariff from November 2009. Legislation for the Victorian feed in tariff was introduced on March 10, 2009; then revised and passed on June 25, 2009.

Under the program, Victorian households, community organisations and small businesses who consume less than 100 megawatt hours of electricity a year will be credited a minimum 60 cents for every unused kilowatt hour of power fed back into the state electricity grid. Some electricity retailers may offer a higher amount.

While electricity companies are only obliged to offer the 60c rate and as only a 12 month credit, some are now offering cash payments at higher rates: 

The tariff will only be available until a total capacity of systems participating reaches 100 megawatts total capacity.

PV systems larger than 5 kilowatts in size and other renewable energy systems up to 100 kilowatts in size remain eligible for the standard feed-in tariff. On July 21, the Victorian Government also announced new initiatives for medium and large scale power installations- details are to be released in due course.

PFiT vs SFiT in Victoria

In Victoria, electricity distributors (upstream from electricity retailers) Powercor and Citipower have created confusion regarding FiT issues by introducing their own terminology – PFiT and SFiT, which stand for Premium Feed In Tariff and Standard Feed In Tariff.

Essentially, they are two different options offered to solar power system owners with different rates for electricity consumed, depending upon usage pattern.

The terms are defined as follows:

•PFiT – This plan offers to pay you for the electricity you feed back into the Victorian grid, over and above what you use at home, at a premium of $0.60 per kWh. Most electricity retailers in Victoria offer a premium of between $0.06-0.08 and you should contact your retailer to find out how much their premium is. Whenever your home electricity demands are less than what your solar panel is producing, you will be feeding electricity into the grid.
•SFiT – This plan offers to pay you for the electricity you feed back into the electricity grid, over and above what you use at home, at the same rates as you pay to purchase electricity under your current electrical services contract. The plan is available for electricity generated from any renewable resource, such as the sun or wind.
PFiT vs SFiT - what should you choose for consumption?

Bearing in mind the PFiT and the SFiT options have been imposed at the electricity distributor level, the general rule of thumb is:

•If you have more than one meter and it’s being used to operate appliances during daytime such as dual element electric hot water, under floor slab heating or an air conditioner, then you are likely best to choose the standard feed in tariff option (SFiT)
•If you have two meters & one applies to a single element HW system you will likely benefit most from the premium feed in tariff (PFIT) option.
•If you have one meter, then you would likely be best to opt for a premium FiT (PFiT)
Which distributor should you choose?

Unfortunately, you have no choice. A distributor is assigned to specific geographic areas:

Citipower: CitiPower distributes electricity to Melbourne's CBD and inner suburbs.

Jemena :Jemena Electricity Networks distribute electricity to the north-west greater metropolitan region of Melbourne.

Powercor Australia: Supplies electricity to Melbourne's outer western suburbs and regional and rural centres in the central and western areas including Ballarat, Bendigo and Geelong.

SP Ausnet: Supplies electricity to eastern metropolitan Melbourne and eastern Victoria.

United Energy Distribution :Supplies electricity to south-east Melbourne metropolitan area and the Mornington Peninsula.

South Australia net feed in tariff
From July 1 2008, qualifying South Australian residents began receiving$0.44 per kilowatt-hour.

On June 23, 2011; changes were made to the program that would see new connections made under the scheme from October 2011 receive 16c per kilowatt hour, plus an electricity retailer contribution of 6c per kilowatt hour.

ACT gross feed in tariff
In July 2008, legislation was passed in the ACT's Legislative Assembly for a gross feed in tariff to be implemented and originally paid 50.05c/kWh for systems up to 10kw capacity and 40.04c/kWh for up to 30kW capacity. The program was revised in April 2010; from 50.05c/kW to 45.7c/kWh for all systems up to 30kW capacity installed from July 1 and that price will remain in place for two years. All contracts are valid for 20 years from the date of contract.

In September 2010, the ACT government released details of a proposed expansion of its feed in tariff scheme that may incorporate medium and large-scale generators, up to 200kW capacity and beyond.

In April 2011, the  ACT government announced the new medium scale solar power payment percentage would remain set at 75% of the micro-generator category rate, a price of 34.27 c per kilowatt hour

On June 1, 2011, the A.C.T's micro solar feed in tariff (systems under 30kW) was closed to new connections; but a 1:1 feed in tariff was announced by ActewAGL for residential system owners. The medium scale program for commercial solar power remains open and unchanged.

On July 1, 2011, legislation was passed to allow small scale generators to receive the same rate as systems covered under the medium scale program; and to share the medium scale cap.

On July 14, 2011, the ACT Government announced the program had reached capacity and was closed to all new connections of medium-scale and small-scale systems. We are awaiting confirmation that the 1:1 feed in tariff previously announced by ACTewAGL will be re-implemented.

Tasmania net feed in tariff
The current feed in tariff rate for Tasmania solar power production is $0.20 per kilowatt-hour; but there have been moves to introduce a gross feed in tariff in the state soon. Sign up for our newsletter via the subscription box on the right hand menu of this page (towards the bottom of the news box) and we'll keep you up to date with developments in the Tasmania solar power feed in tariff situation.

Northern Territory net feed in tariff
For new connections, the Northern Territory feed in tariff is 1-for-1 - whatever the customer's consumption tariff is:

•residential customers: 19.23 c/kWh
•commercial: 22.37 c/kWh
•commercial time-of-use customers: peak 28.63 c/kWh and off-peak 16.12 c/kWh
Customers under the Alice Springs Solar City initiative receive 51.28 c/kWh, still capped at $5/day, but that rate is only for existing customers under the initiative. The funding has been fully allocated now, so no new customers can receive this rate.

Western Australia net feed in tariff
As of August 1, 2011 Western Australia's feed in tariff installation quota was reached and the program suspended for new connections. However, Synergy and Horizon Power will continue buying excess electricity fed into the grid from all residential solar power systems under the State Government’s Renewable Energy Buyback Scheme.

After previously announcing a rate of $0.60 per kilowatt hour based on a gross model starting some time in 2009, the Western Australian government rescinded the rates and conditions in June 2009 and decided on a net feed in tariff model.

On May 27, 2010, the Western Australian Government announced the Residential Net Feed-in Tariff Scheme will commence August 1, 2010 and pay a rate of 40 c/kWh for net electricity exported to the mains grid; in addition to any schemes offered by electricity retailers.

On May 19, 2011, the Western Australian government announced the State's solar net feed in tariff payment rate will be slashed from 40c per kilowatt hour to 20c for applications to join the program received after June 30, 2011. A firm overall capacity cap of 150MW was also put in place for the program. R

Residential Net Feed-in Tariff Scheme participants will receive the premium rate for 10 years. Solar power systems will be limited in size to 5kW for Synergy customers and 10kW per phase (30kW in total) for Horizon Power customers.

System size must be consistent with Renewable Energy Buyback Scheme (REBS) which is 5kW for Synergy customers and 10kW per phase (30kW in total) for Horizon Power customers (Horizon Power customers installing greater than 5kW must consult Horizon Power first). These are determined by the size of the inverter.

The feed in tariff is in addition to the price paid by Synergy and Horizon Power under the Renewable Energy Buyback Scheme.

Queensland net feed in tariff
The Queensland Government Solar Bonus Scheme commenced on 1 July 2008. Grid connect solar owners participating in the scheme will be paid $0.44 per kilowatt hour (kWh) for surplus electricity fed into the grid, plus local electricity companies may choose to over additional payments above that.

New South Wales feed in tariff
As of June 14, 2011 the Solar Bonus Scheme was closed to new applications, the NSW Government says net metering will be available and recommends consumers research energy retailers offering separate financial incentives for customers with solar power systems. Solar Credits are also still available, offering thousands off the cost of new solar power system.

NSW Program History

The New South Wales Government originally announced details of the state's feed in tariff incentive (called the Solar Bonus Scheme) on June 23, 2009, but on November 9 2009, made a decision to switch from a net feed in tariff to the gross model; a much more generous arrangement. The program was rolled out offering payments of 60 c/KWh on a gross basis (for new connections made up until October 27, 2010)

Rates for the hugely popular feed in tariff program were reduced to 20c/kWh for new connections after midnight, October 27, 2010.

Furthermore, in mid-January 2011, the NSW Government announced the 300MW of installed solar capacity under the program was rapidly approaching, with applications already in the system exceeding that amount. After the 300MW cap was reached, the program may be ended, however, some NSW electricity retailers are offering payments separate to the Solar Bonus Scheme and net metering is also an option for new connections whereby electricity exported to the mains grid is credited to an account.

On May 13, 2011, the NSW Government announced the NSW Solar Bonus Scheme was now closed to new applications and applications lodged from midnight 28 April 2011.

NSW gross feed in tariff and electricity meters

According to the information we had on hand, current as at late December 2009, there are 3 distributors who were handling the GFiT separately (for those who were eligible, prior to the program being changed/put on hold):

a) Integral (West & South Sydney) - Integral meters can be reprogrammed and the gross feed in tariff will be offered from 1/1/2010. Customers must apply for the gross feed in tariff and may need to pay a fee.

b) Energy Australia (North Sydney) – The gross feed in tariff will not commence until 1/7/2010 for Energy Australia customers, but the net feed in tariff will be available before this time. Energy Australia's meters cannot be reprogrammed. Customers will need to change to a net meter on 1/1/2010 and then to a gross meter on or around 1/7/2010. It is likely that customers will need to pay for 2 meter changeovers.

c) Country Energy (the rest of NSW) – As per Energy Australia; the only difference being since January 1 2010, all grid interactive metering became contestable works. This means that although there is no charge for the meter, customers are asked to engage a level 2 Accredited Service Provider (ASP) to complete the installation of the meters. This will incur a varied cost.