ACT electricity ActewAGL will be reducing its current solar feed-in tariff incentive a generous 1-for-1 rate (gross) to 7.5c/kWh (net). Those who wish to receive the current rate must submit a ‘Special Connection Request Form‘ (PDF) to ActewAGL by 30 June 2013. Those who successfully apply by the deadline will be eligible to receive the current incentive until 1 July 2020.
ACT customers who install a solar PV system after the 30 June cut-off will do so under a ‘net metering’ setup, where they are paid a rate of 7.5c/kWh for excess solar power that they export to the electricity grid. For these customers, the majority of savings will come from offsetting power bills through ‘self-consumption’ of the solar power that they produce–i.e. by avoiding the purchase of electricity from the grid. This is especially beneficial for homes and businesses that are occupied during the day.
ActewAGL’s current gross feed-in tariff incentive program pays solar system owners a rate equivalent to the rate that they pay for their electricity from the grid–commonly known as a ‘1-for-1 feed-in tariff’. Customers under such an arrangement are guaranteed a set, per-unit rate for the solar energy that their solar systems produce.
Customers already receiving the gross feed-in tariff will not be affected by the change, and will continue receiving this incentive until the program expires on 1 July 2020. After this, they will have the option to switch to a net metering arrangement.
Thinking about going solar to take advantage of the ACT’s current incentive? Let Solar Choice help you compare solar panel installers. Request a free, instant
For more information, visit the ActewAGL website.
© 2013 Solar Choice Pty Ltd
Net metering pays out at the retail rate in the US in all the examples I’ve heard of. This structure is more like a conventional Power Purchase Agreement . It’s not so different from the rate a new Natural Gas plant would get.
Hi Lee,
Thanks for commenting. Australia doesn’t seem to be following the US with regard to this. The ‘fair and reasonable’ value of solar has been deemed by pricing commissions and utilities across Australia to be around 8c/kWh at this point in time. (NSW is a bit more, but no electricity retailer is actually required to pay out the recommended rates that IPART sets).
Plenty of prominent voices disagree with this approach, saying that this pricing should take into account the network benefits of having lots of solar PV and other distributed generation systems. One of those is reduced electricity demand, which in turn means less need for investment in new infrastructure and generation capacity–and indeed, demand has been dropping in Australia (although solar PV is only one of the reasons for this).