Feed-in Tariffs

An electricity retailer pays a Feed-in Tariff (FiT) to a customer for electricity fed back into the electricity network from a renewable electricity generation system such as a rooftop solar panel system or wind turbine.

These 'distributed generators' are connected to the network through import/export meters which record the amount of electricity imported from, and exported to, the network. The FiT is payable on the net amount of power exported to the network with the FiT Rate determining the amount paid to the customer.

There are two FiT rates available to Tasmanian electricity customers; the Regulated FiT Rate and the Transitional FiT Rate.

The Regulated FiT Rate is available to Standard FiT customers with a “qualifying system". A “qualifying system" is a system that generates electricity from either solar, wind or water, complies with Australian Standard AS4777 and has a maximum generating capacity of 10kW for a single-phase system or 30kW for a three-phase system.

The Regulator determines the regulated FiT rate after conducting an investigation. Further information regarding the current 2016 Regulated Feed-in Tariff Rate Investigation and Determination is accessible here.

Regulated FiT Rate

The Regulated FiT rates determined under the 2016 Regulated Feed-in Tariff Rate Determination are as follows:

Table 1: Regulated FiT rates under the 2016 Regulated Feed-in Tariff Rate Determination

Periodc/kWh (excluding GST)
1 July 2016 - 30 June 20176.671
​1 July 2012 - 30 June 2018​8.929

 

The 2017-18 FiT rate is 34 per cent higher than the 2016-17 rate of 6.671 c/kWh.

This increase was due to the increase in the Wholesale Electricity Price (WEP) for 2017-18. Movements in the WEP have a major impact on the regulated FiT rate as outlined in the formula in the 2016 FiT Rate Determination.

Transitional Feed-in Tariff Rate

Under section 44D of the Electricity Supply Industry Act 1995, certain customers are entitled to a Transitional FiT Rate.

To be eligible for this rate, customers had to have:

  • a qualifying micro distributed generation system installed as at 31 August 2013; or
  • a contract to install a qualifying new micro distributed generation system with the system installed and connected before 31 August 2014 and TasNetworks (the distributor) having received and approved the application by 31 August 2013; or
  • a contract to extend an existing micro distributed generation system before 31 August 2013 with the extension installed and connected before 31 August 2014 and TasNetworks having received and approved the application by 31 August 2013.

Transitional FiT customers with billing periods (including parts of billing periods) expiring before 1 January 2019, are entitled to receive the FiT rates specified in the following table:

Table 2: Transitional FiT rates

Customer TypeColumn (1)Column (2)Column (3)
c/kWhc/kWh for first 500 kWh supplied during each billing periodc/kWh for each kWh supplied after the first 500 kWh during each billing period
Residential28.283 (including GST)N/A - see column (1)N/A - see column (1)
Small BusinessN/A - see Columns (2) and (3)38.577 (including GST)28.319 (including GST)

 

Systems generating more than 10kW continue to be eligible for the transitional feed-in rate where the customer applied to connect the system, and the electricity distributor accepted the application, before 31 August 2013.

Background

In December 2012, the Council of Australian Governments (COAG) agreed on revised National Principles for Feed-in Tariff Arrangements (see Attachment B of the Regulator's October 2013 Regulated FiT Final Report).

These revised principles outline, amongst other things, that all premium FiT arrangements were to be closed to new participants by 2014. Furthermore, all other FiT customers were to receive a 'fair and reasonable' value for their exported electricity. Consistent with this, premium FiT schemes are now closed to new participants and each Australian jurisdiction has determined new 'fair and reasonable' values for exported electricity for new FiT customers. Electricity retailers may voluntarily pass on a higher FiT amount as part of their unregulated market offers.

Before 30 August 2013, Aurora Energy voluntarily offered a FiT under its net metering buyback scheme (NMBS). The NMBS offered customers a 'one-for-one' (1:1) FiT at the regulated light and power tariff (Tariff 31 for residential customers) or general supply tariff (Tariff 22 for small business customers) for the amount of electricity exported.

Government Policy

As part of the 2013 electricity reforms and consistent with the reforms agreed to by COAG, a review of the FiT rate applying in Tasmania was carried out.

Following the release of an issues paper on 16 May 2013 and consideration of submissions received on that paper, the Government at that time announced the following policy position on 18 August 2013:

  • the then current one-for-one FiT arrangement would be closed at midnight on 30 August 2013 and would continue to be available to existing customers until 1 January 2019;
  • customers applying to install eligible micro distributed generation systems on or after 31 August 2013 would be entitled to a feed-in-tariff rate of 8 c/kWh from 31 August 2013 until 31 December 2013;
  • the Regulator would determine the Standard Feed-in Tariff Rate to apply from 1 January 2014 for all new installations occurring on or after 31 August 2013 ; and
  • the Regulator would review the FiT rate on an annu​al basis.

The Regulator subsequently carried out an investigation to determine the Standard Feed-in Tariff Rate to apply for the period from 1 January 2014 to 30 June 2016.

The following table outlines the Regulated FiT Rates for standard FiT customers determined by the Regulator in accordance with the 2013 FiT rate Determination.

Table 3: 2013 FiT Rate Determination - Regulated FiT rates for standard FiT customers by Period

Periodc/kWh (excluding GST)
1 January 2014 - 30 June 20148.282
1 July 2014 - 30 June 20155.551
1 July 2015 - 30 June 20165.500