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Feed-In Tariff (Feed-In Law)
The ACT and NSW Feed-In Tariff's mean that every kWh of electricity generated by solar systems in NSW and the ACT is fed back into the grid at a premium price. The Feed-In Tariff's use gross metering, where the premium rate is paid on all of the electricity produced by the solar power system. These Feed-In Law's turn your solar system into a source of revenue and dramatically reduce the payback period. After the system has paid itself off, it becomes a source of profit.
ACT:
Effective midnight 13 July 2011, Feed-in Tariff Scheme Closes.
On 8 2011 July the Government released an amendment to the Feed-in Tariff stating home owners can once again qualify for the scheme at the rate of 30.16c/kWh. This will remain in effect until the 30MW combined cap is reached. The combined cap consists of the Micro and the Medium scale generator categories - each with a 15MW cap. 23MW have already been reached leaving a small amount for home owners interested in solar. We estimate it will be a matter of months before this 30MW cap is reached.
For detailed information please read Revised ACT Feed-In Tariff Scheme.
The ACT Feed-In Tariff offers a premium rate for the first 20 years of the system’s life. The premium price is set annually and the rate is guaranteed at the time of purchase.
Stage 1, which began 1 March 2009, provides systems connected between 1 March 2009 - 30 June 2010 to receive a premium of 50.05c per kWh for systems up to 10kw, and 40.04c for systems 10kW - 30kW.
Stage 2, announced 13 September 2010, provides systems connected between 1 July 2010 - 30 June 2011, to receive a premium of 45.7c per kWh for all systems up to 30kW. In addition, this stage sets a cap of 15MW on all household rooftops within the ACT. As of August 2010, approximately 6.5MW have already been used leaving around 8.5MW for new solar applicants.
The Government announced midnight on 31 May 2011 the 15MW Micro Generator cap had been reached. The Feed-in scheme therefore closed to all new applicants. Micro Scale Feed-in Tariff Closes.
The following are great resources for the ACT Feed-In Tariff: ACTEW, & ACT Government.
NSW:
The NSW Feed-In Law, refered to as the Solar Bonus Scheme, began on 1 January 2010. As of 29 April 2011 the Government announced "The Scheme will be closed to new applicants effective midnight 28 April 2011." Customers already receiving or who applied (but are not yet connected) for the 20 cent tariff rate before 29 April 2011 are not affected by the changes. Customers already receiving or who applied (but are not yet connected) for the 60 cent tariff will continue to receive 60 cent rate announced 7 July 2011. More information regarding on the NSW scheme can be found on their FAQ page. Review the NSW Government website for more detailed information.
Renewable Energy Certificates (RECs) and the Solar Credits Scheme
Renewable Energy Certificates (RECs) represent “the technology and environmental attributes of electricity generated from renewable sources”. They are essentially a form of renewable energy currency that can be traded for cash. RECs are usually sold in 1 megawatt-hour (MWh) units and, like all currency its value can fluctuate.
As of 9 June 2009, the Federal Government Solar Credits Scheme offers solar power investors 5 for 1 RECs on the first 1.5 kW of their system. Each kW above 1.5 will then earn approximately 20 RECs/kW. This rebate is only valid if the customer chooses to sell the RECs generated by their installed system. It is important to remember once the RECs from a system are sold, the buyer can use the RECS to help accredit their electricity green power. This is how your electricity retailer is able to sell to you ‘Green Power’, even if the retailer doesn’t actually generate green power itself.
On 5 May 2011, the Government announced that the Solar Credits multiplier will be reduced to three for small-scale systems installed from 1 July 2011. The multiplier will then phase down by one each year consistent with the original intent of the Solar Credits multiplier reducing over time, until the multiplier is phased out by 1 July 2013. For more information please review the Solar Credits fact sheet.
