Premium Feed-In Tariffs
Jemena Electricty Network
On the 1st November 2009, the Victorian Government introduced the premium feed-in tariff for Victorian customers with net metered solar photovoltaic power systems, offering a premium rate for any electricity fed back in to the power grid.
Households, community groups and small businesses with solar photovoltaic systems up to 5 kilowatt in capacity and consuming less than 100 megawatt hours a year, will receive $0.60 cents per kWh hour for any electricity fed back in to the power grid.
For more information regarding your premium feed-in tariff rates, please contact your retailer, however the Jemena Electricity Network tariffs will include a peak and off peak periods.
The Premium Feed-in Tariff scheme will be closed in late 2011
On Thursday 1 September 2011 the Victorian Government Energy Minister Michael O’Brien announced that the Premium Feed-in Tariff (PFIT) scheme will be closed in late 2011. A new scheme called the Transitional Feed-in Tariff (TFIT) will begin 1 January 2012, offering 25 cent/kWh for export generation.
In his announcement Minister O’Brien specified that for customers to ensure eligibility for PFIT they need to submit all necessary paperwork to their electricity supplier by September 30. The Minister made it clear that customers without solar PV panels already installed would be very unlikely to submit paperwork in time to access PFIT.
What is PFIT and why it is being closed?
PFIT is Victorian Government legislation offering 60 cents/kWh for export generation from solar PV systems. It is being closed because the legislated 100MW capacity limit is being reached. The PFIT was set up to accept a total capacity of 100 megawatts of installed solar power across the state. The scheme is now over 85 percent full.
How do I ensure access to the PFIT?
If you have already paid a deposit for solar panels and would like to be considered for the premium rate, by 30 September you must
- Have solar panels installed
- Have a Premium Feed-in Tariff contract in place with your chosen electricity retailer
- Have lodged a Solar Connection Form with Jemena
- Have lodged the 'Electrical Work Request' and 'Certificate of Electrical Safety' forms with your electricity retailer
What happens if I’ve already signed up for solar PV panels?
If you have already signed-up or are in the process of having solar panels installed you should
- Check your contracts and make sure they specify firm timeframes for panel installation
- Contact your installer and make sure that they can have the necessary forms completed and provided to the relevant electricity suppliers by 30 September.
- Follow-up with your electricity retailer and to make sure they have received these forms by 30 September and that they are all complete and correct.
What happens if I’m already on the PFIT?
Eligible customers who are signed up to the Premium Feed-in Tariff and having credits recorded against their account will continue to receive this rate until 2024. No retrospective changes will be made.
What happens if I miss out on PFIT?
Eligible customers who miss out on the Premium Feed-in Tariff deadlines will be able to apply for the transitional offer. It is anticipated that the legislation for the new Transitional Feed-in Tariff will be tabled in Parliament in mid- October, and that the scheme will be available to customers from 1 January 2012. Anyone who submits their paperwork after September 30 should contact an electricity retailer and ask about the new Transitional Feed-in Tariff.
What is the premium feed-in tariff pass through cost and who pays for it
In addition to the premium feed-in tariff rebate payment made to qualifying customers, the administration of the premium feed-in tariff scheme will cause Jemena Electricity Network to incur additional costs, namely system setup costs and administration costs. The Australian Energy Regulator has determined the premium feed-in tariff rebate payments and the administration of the premium feed-in tariff scheme costs to be treated as pass through costs.
As a result the Jemena Electricity Network recovers these costs from all its customers through its approved annual network tariffs applied to customers network bills. The value of the premium feed-in tariff pass through cost in 2010 (this is the first year the premium feed-in tariff pass through cost recovery occurs), is in the range 0.022 - 0.024 cents per kWh, depending on the network tariff assigned to the customer and the electricity consumption time period.
Full details of the premium feed-in tariff pass through rates, Jemena Electricity Network applies to each tariff, be it in 2010 or beyond are listed in its relevant tariff report.
Eligibility criteria
All electricity retailers with more than 5,000 customers must offer a premium feed-in tariff for net metered solar photovoltaic to their customers. For customers to be eligible, they must meet the following criteria;
- Be a household, community organisation or small business
- Have a solar photovoltaic system no greater than five kilowatts in size
- Claim only solar photovoltaic systems installed at your principle place of residence (if you are a household)
- Claim only one solar photovoltaic system per site
- Consume 100 megawatt hours or less of electricity per year (if you are a small business or community organisation)
The process
As part of the installation process, you will be required to complete the Schedule 1 component of the customers rights and obligations document which outlines the configuration of your system. Your installer will be able to complete the relevant sections at the time of installation.
Once your solar photovoltaic is installed, you must contact your retailer to arrange for your existing meter to be changed for an interval meter which is able to measure both the import and export from your property. This will ensure you are able to receive the premium feed-in tariff.
More Information
- For queries relating to the PFIT or TFIT scheme please refer to the Department of Primary Industries website
- For queries relating to PFIT contracts or Electrical Work Request / Certificate of Electrical Safety paperwork please contact your electricity retailer
- For questions regarding products, services and billing, please contact your electricity retailer (the company you receive your electricity bill from)
- For queries relating to Solar Connection Forms please contact Jemena on 1300 658 049