Retailers operating in Tasmania are required to pay a minimum feed-in tariff to customers for electricity exported to the grid from qualifying electricity generating systems.
During 2021-22 the Regulator conducted an investigation to determine a method for calculating the minimum feed-in tariff rate to apply between 1 July 2022 and 30 June 2025.
Determination and Final Report
On 21 April 2022, the Regulator made its 2022 Regulated Feed-in Tariff Rate Determination and released its Final Investigation Report. The Regulator also published a Media Release.
The Final Report sets out the Regulator's decisions with regards to determining the regulated feed-in tariff rate for small-scale distributed generation (such as solar PV) for mainland Tasmania for each of the 2022-23, 2023-24 and 2024-25 financial years. The Report explains each of the decisions made, including the Regulator's responses to stakeholder comments on the Draft Report.
2022 Regulated Feed-in Tariff Rate Investigation Final Report (PDF 942Kb)
2022 Regulated Feed-in Tariff Rate Determination (PDF 588Kb)
The feed-in tariff rate for 2022-23 is provisionally estimated to be around 7.2 cents per kilowatt hour, up from 6.501 cents in 2021-22. The final rate will be determined in mid‑June 2022.
In determining the feed-in tariff rate, the Regulator has maintained its previous approach of using the 'avoided cost' methodology. This methodology aims to ensure that customers with small-scale distributed generation systems (such as solar PV) receive a price for the electricity they export to the grid which reflects the value of that electricity to retailers.
Formula for calculating the regulated feed-in tariff rate (1 July 2022 to 30 June 2025)
The minimum feed-in tariff rate to be paid by an authorised retailer to a feed-in tariff customer during the term of this Determination is calculated in accordance with the following formula which is set out in the 2022 Regulated Feed-in Tariff Rate Determination:
FiTy = (WEPy x MLFy x DLFy) + (AEMOy x DLFy)
FiTy is the regulated feed-in tariff rate in c/kWh to be paid to feed-in tariff customers.
y is the relevant period.
WEPy is the wholesale electricity price calculated by the Regulator in accordance with the 2022 Standing Offer Determination (Aurora Energy), during the annual standing offer price approval process, expressed in c/kWh.
MLFy means the load weighted average marginal loss factor at the regional reference node for Tasmania for the relevant period as approved by the Regulator during the annual standing offer price approval process.
DLFy means the load weighted average distribution loss factor for Tasmania for the relevant period as approved by the Regulator during the annual standing offer price approval process.
AEMOy means the forecast charges, as billed by AEMO for market participation and ancillary services for each period that vary with the amount of wholesale electricity sold by authorised retailers, expressed in c/kWh. The Regulator will estimate AEMO charges for each period during the annual standing offer price approval process.
On 28 January 2022, the Regulator released its 2022 Regulated Feed-in Tariff Rate Investigation Draft Report and Draft Determination for consultation.
The Draft Report sets out the Regulator's intended approach to determining the regulated feed-in tariff rate for small-scale distributed generation (such as solar PV) for mainland Tasmania for each of the 2022-23, 2023-24 and 2024-25 financial years.
2022 Regulated Feed-in Tariff Rate Investigation Draft Report (PDF 928Kb)
2022 Regulated Feed-in Tariff Rate Draft Determination (PDF 583Kb)
The consultation period closed on 15 March 2022.
Submissions have been received from:
K. Pulczynski (PDF 220Kb)
M. Garcia (PDF 207Kb)
G. Grimes (PDF 168Kb)
G. Cooper (PDF 1Mb)
Tasmanian Renewable Energy Alliance (PDF 454Kb)
Notice of intention to conduct a pricing investigation
On 25 September 2021, the Regulator announced that it intended conducting a Regulated Feed-in Tariff Rate Investigation:
Notice of Intention to conduct a Regulated Feed-in Tariff Rate Investigation and Determination (PDF 654Kb)
In determining the feed-in tariff rate, the Regulator considers:
(a) the fair and reasonable value to authorised retailers of electricity supplied to the distribution network by feed-in tariff customers;
(b) the net financial benefit, to authorised retailers, of electricity supplied to the distribution network by feed-in tariff customers, having regard to the costs of authorised retailers, including, but not limited to including –
(i) the costs to authorised retailers of purchasing wholesale electricity; and
(ii) other costs of authorised retailers in operating their retail electricity businesses;
(c) the other costs, or other benefits, that –
(i) include those related to the distribution networks or transmission networks; and
(ii) result, either directly or indirectly, from the supply of electricity to distribution networks by qualifying systems at premises of small customers;
(d) National Principles for Feed-in Tariff Arrangements, as those Principles apply from time to time;
(e) any arrangements of the Commonwealth, whether legislative or otherwise, in relation to the pricing of carbon emissions or other mechanisms to reduce the use of carbon-emitting fuels;
(f) the principle that the feed-in tariff rate specified in the determination should not have the effect that any customer would effectively be cross-subsidising any other customer;
(g) the possible introduction of a time-of-use feed-in tariff including consideration of costs and benefits; and
(h) approaches, methodologies, findings or recommendations, taken or made in other jurisdictions for determining fair and reasonable feed-in tariff rates.
The timeframes for the investigation are as follows:
|Regulator releases regulatory notifications in relation to the investigation and determination||25 September 2021|
|Regulator conducts its investigation||October 2021 - January 2022 |
|Regulator releases its draft report and draft FiT rate determination, for public consultation||28 January 2022|
|Consultation on the Regulator's draft report and draft FiT rate determination||1 February 2022 - 15 March 2022|
|Regulator releases its final report and determination||21 April 2022|
|Regulator determines the FiT rate for 2022-23 (consistent with its determination) ||Mid-June 2022|