The Regulator determines a method for calculating the regulated minimum feed-in tariff rate for electricity exported to the grid by eligible customers in mainland Tasmania. The regulated feed-in tariff rate is determined by the Regulator using this methodology each financial year.
Feed-in tariff rate from 1 July 2020 to 30 June 2021
For 2020-21 the regulated minimum feed-in tariff rate is 8.471 cents per kilowatt hour.
The 2020-21 feed-in tariff rate is 9.4 per cent lower than the 2019-20 rate. The lower rate is due to:
- a nine per cent decrease in the wholesale electricity price (WEP) determined by the Regulator for 2020-21 in accordance with the methodology set out in the Standing Office Price Approval Guideline; and
- a small reduction in loss factors that has reduced the value of avoided distribution and transmission and energy losses in 2020-21 compared to 2019-20.
The reduction in the 2020-21 feed-in tariff rate is more than the reduction in Aurora Energy's standing offer prices for 2020-21 approved by the Regulator on 19 June 2020. This is because Aurora Energy's standing offer prices for 2020-21 reflect increased metering costs and Renewable Energy Target costs and the recovery of some higher than anticipated costs for 2019-20.
The 2020-21 feed-in tariff rate has been determined under the Regulator's 2019 Regulated Feed-in Tariff Rate Determination.
Regulated feed-in tariffs for customers
- Customers must have a qualifying electricity generating system (solar, wind or water generators compliant with Australian Standard AS4777, with a maximum capacity of 10 kW for a single-phase system or 30 kW for a three phase system) connected to the distribution network through import/export meters which record electricity transferring from and to the network.
- Energy a customer uses onsite is offset from their power usage.
- When a customer does not use all electricity generated by their system, the excess is exported to the network and they are paid a FiT rate per kilowatt hour (kWh) of electricity exported.
- When the system does not generate enough energy to meet the customer's demand (for example at night, during day-time peak periods, or in winter when there is fewer daylight hours), electricity is imported from the grid.
Determination of the feed-in tariff rate
The Regulated feed-in tariff rate is determined by the Regulator after conducting an investigation.
The following table sets out the feed-in tariff rates, as determined by the Regulator, after conducting investigations in 2016 and 2019.
Table 1: Regulated FiT rates under regulated feed-in tariff rate determinations
|2016 Regulated Feed-in Tariff Rate Determination||1 July 2016 - 30 June 2017||6.671|
Transitional feed-in tariff rates
Transitional arrangements for feed-in tariff customers ceased on 1 January 2020. All customers previously identified as transitional are now regulated feed-in-tariff customers.
Transitional feed-in tariff rates were introduced to assist customers who had installed a solar system to recoup the cost of that investment. Their legislated, premium rates were available for a period of five years and expired on 31 December 2018.
Customers who, prior to 31 August 2013:
- installed a qualifying distribution system; or
- had an application approved by TasNetworks to install or extend such a system (installation and connection was required by 31 August 2014), were eligible for these rates.
These arrangements were closed to new participants by 2014. Under these arrangements:
- residential customers received 28.283c/kWh; and
- small business customers received:
- 38.577 c/kWh for energy consumed up to 500 kWh in a quarterly billing period; and
- 28.319 c/kWh for energy consumed above 500 kWh in a quarterly billing period.
From 1 January 2019 to 30 June 2019, both residential and small business customers received the 2018-19 regulated FiT rate plus an additional Government funded bonus of 5 c/kWh. Between 1 July 2019 and 31 December 2019 these customers received the additional Government bonus of 5 c/kWh on top of the 2019-20 regulated FiT rate.