Victoria set for reduced Feed-in Tariffs for 2016
The Victorian Essential Services Commission (VESC) has released its draft decision into changes to the solar feed-in tariff for Victoria to apply from 1 January 2016. The VESC calls for a reduction in the feed-in tariff rate from 6.2 to 5.0 c/kWh.
This is bad news for solar customers who export their excess energy into the grid. The reduction in feed-in tariff is as a consequence of the broader reduction in electricity prices over 2015, according to the VESC's draft decision.
As rooftop solar continues to grow the glut of supply during daylight hours will mean that over-generation will keep the value of PV generated electricity low. The price set by the VESC is the minimum price that must be offered to PV owners. In some cases retailers will offer above the minimum set rate in order to entice new or existing customers.
Read more about the decision HERE