The relationship between solar panels and the minimum feed-in tariff

Question:

What are the responsibilities of the commission when it comes to setting the minimum feed-in tariff? Does it consider solar panel owners?

Answer:

When we set the minimum feed-in tariff, we aim to ensure solar customers are being paid an efficient price for their energy by their retailer.

Our decisions are made in the long-term interests of all Victorian consumers. This includes:

• half a million solar customers receiving an efficient price for the value of their energy
• two and a half million non-solar customers.

The tariff and solar panel financial incentives

Initiatives like the Victorian Government’s Solar Homes Program and Australian Government’s Small-scale Renewable Energy Scheme provide a financial incentive to install solar systems through rebates.

As an independent regulator, we must ensure the price for energy produced by a homeowner’s solar panels meets the long-term interests of all Victorian consumers. We do this by setting the price to reflect the true value of solar energy in the feed-in tariffs.

Legislation controls how we regulate the minimum tariff

When we set the minimum feed-in tariff, we operate within a framework set out in legislation by the Victorian Government. The costs we must consider in setting the minimum feed-in tariff are listed in the Electricity Industry Act 2000, Section 40FBB. In considering those costs, we must promote the long-term interests of Victorian energy consumers (including solar customers and non-solar customers).

View more information on how we regulate the electricity and gas industries.

Got a question?

View more information on the minimum feed-in tariff, read about our stakeholder engagement framework, or contact us.