Feed-in Tariffs

Victoria has a net feed-in tariff agreement in place. This means that you get paid by your electricity retailer for the excess electricity that you feed back to the grid.

There are two different types of feed-in tariffs available to households, businesses and schools who have solar power installed– standard feed-in tariff (SFIT) and transitional feed-in tariff (TFIT) (available from 1 January 2012).

SFIT

Under a SFIT agreement you will be paid the same rate for your excess electricity as what you are purchasing it for. For example, if you are paying $0.23/kWh for the electricity you are using from the grid, you will be paid $0.23/kWh from your electricity retailer for the excess electricity you feed-in to the grid. Changes made in October 2011 by the State Government mean that systems installed after 1 January 2012 that are eligible for TFIT (ie systems 5kW or less) will not be able to receive SFIT, instead they must sign up for TFIT. Only system greater than 5kW will be able to receive SFIT post 1 January 2012.

TFIT

Under a TFIT agreement you will be paid a minimum $0.25 (ex GST)/kWh. This rate may vary between electricity retailers. If you are considering installing solar power or already have solar power installed, we highly recommend that you contact several electricity retailers to find the best rates to suit your individual situation.

The TFIT is only available if the solar power is installed at your principal place of residence (for home owners), and the system must not be greater than 5kW. Businesses are also eligible for TFIT. Home and businesses signed up for TFIT will continue to receive it until 2016.

For more information in tariffs, please visit the Department of Primary Industries website