(Interested in what’s happening with the feed in tariff in your state? Chat with a Solar Choice broker about the incentives that apply to you and get a free comparison of solar quotes from solar system installers in your area.)
Solar energy feed in tariffs–where you are paid for the solar energy you generate and feed back into the grid–exist in one form or another throughout most states in Australia. (Up-to-date information on state-by-state solar feed-in tariff schemes.) Some electricity providers offer rates higher then the minimum stipulated by their respective state governments. Below is a survey of all the electricity retailers in Australia, state by state, that are providing solar feed in tariffs.
“This article was last updated on 5 Sept 2011″
Read about solar feed-in tariffs in your state:
NSW - VIC - QLD - SA - WA - ACT - NT - TAS
Types of solar feed-in tariffs: Gross and Net
As you may have heard there are two types of feed in tariffs Gross and Net.
Gross feed in tariff – A gross feed in tariff pays you for every kilowatt hour of electricity your solar cells produce, regardless of how much energy you consume. This type of scheme operated in the ACT and NSW until the conclusion of the feed-in tariff plans there.
Net feed in tariff – A net feed-in tariff pays you only for the surplus energy that you feed back into the grid. This type of scheme operates in Victoria, SA and Queensland. Many states, instead of deciding on a set feed-in tariff rate, offer a 1:1 (one-to-one) net tariff, for which solar power producers are paid the same rate that they pay for retail electricity for power they feed into the grid.
Form of payment for solar feed-in tariff revenues
The feed in tariffs you earn are by default paid as a credit on your electricity bill, which is usually settled quarterly. So the energy you export to the grid works to decrease your electricity bill. In the case that you’ve exported so much energy that your account goes into surplus, almost all energy retailers allow you to claim the cash by cheque or EFT on request. See the tables below for more information on your supplier.
All the information here has been collated from information provided on retailer’s websites, and through phone enquiries. Some energy companies may charge you more for the regular power you consume from the grid when you install solar cells, or charge you an additional fee. Due to the complexity of the energy market these instances can not be fully documented here, but you should check with the retailers in your area if this is the case, and shop around for the best deal.
Is Feed in Tariff income taxable?
Generally speaking, income received to a household from a feed in tariff is not taxable as the system is installed for personal use and not for the sole intention of making a profit. If, however, you are installing the system on a commercial premises then the income from the feed in tariff may be assessed as being taxable.
Will I need to pay GST on Feed in Tariff income?
Households will not need to pay GST on their feed in tariff income as the income will be below $75,000 per year. Businesses, however, will need to do so.
New South Wales
In an unfortunate turn of events, the NSW Solar Bonus Feed-in Tariff Scheme was suspended on 28 April 2011. The state government is currently considering what policy mechanism is to replace the Solar Bonus scheme, but a conclusion is not expected until April 2012. Please keep an eye on the Solar Choice blog or follow us on Twitter for updates on the situation.
New South Wales’ solar feed in tariff was one of the most generous in the country, paying owners for every kWh of solar energy they generate, whether they consume it or export it to the grid. Below is the list of electricity retailers in NSW and what they are currently offering for grid-fed solar electricity.
Although most in NSW retailers offer either nothing or a mere 6c for solar, AGL does offer 28c/kWh, which is comparable to the rates paid in some other Australian states, or a 1:1 net feed-in tariff. (There is also a still a strong argument for installing a solar power system in NSW even without the state incentives.)
For further information on the NSW feed in tariff past and present, see the NSW solar bonus scheme website.
| Retailer | Tariff payable | Cash or Credit? | Additional Fees? | Website |
| (cents per kWh) | ||||
| AGL | 28c (to be reduced to 18c by the end of 2011) | Credit, surplus paid in cash upon request | Installation cost of Gross meter depends on who you network supplier is (see below) | AGL solar homepage |
| Australian Power and Gas | Nothing on offer for new applicants | n/a | n/a | Australian power and gas homepage |
| Country Energy (to be merged into Origin) | Nothing on offer for new applicants | n/a | n/a | Country Energy homepage |
| Energy Australia | 6c | Credit, surplus paid in cash | Installation cost of a Gross meter ~$300 (meter is provided but not installed) | EnergyAustralia solar page |
| Integral Energy (to be merged into Origin) | Nothing on offer for new applicants | n/a | n/a | Integral Energy solar page |
| Origin Energy | 6c | Credit, surplus paid in cash upon request | Installation cost of Gross meter depends on who you network supplier is (see below) | Origin Energy solar page |
| TRUenergy | Nothing on offer for new applicants | n/a | n/a | TRUenergy homepage |
Victoria
Update on the Victoria Premium Premium Feed-in Tariff, 30 September 2011: The Premium Feed-in Tariff scheme has come to an end, but a 25c/kWh transitionary scheme is scheduled to come into effect from 1 January 2012. Please bookmark this page and check back again for details.
Update on Victoria Premium Solar Feed-in Tariff, 1 September 2011: Deadline to have systems installed for the 60c/kWh rate is 30 September 2011.
Victoria operates a net feed in tariff scheme, meaning owners are paid only for the surplus energy they feed back into the grid. The Victoria state government-mandated feed-in tariff rate is 60c/kWh. Any rates higher than this base rate are contributions from the retailer.
For further information on the Victorian feed-in tariff see the Victorian Government feed in tariff website.
| Retailer | Tariff payable (cents per kWh) |
Cash or Credit? | Payment frequency and method | Additional Fees? | Website |
| AGL | 68c (GST inclusive) | Credit, cash surplus paid upon request | Quarterly credit, cash surplus yearly via EFT | $10 admin fee You will be required to move onto a new supply contract that does not offer any discount features |
AGL solar homepage |
| Australian Power and Gas | 60c | Credit only | Credits are extinguished after 12 months and upon termination of contract. | None | Australian power and gas homepage |
| Country Energy (to be merged into Origin) | 60c | Credit, cash surplus paid upon request | Quarterly credit and yearly cash surplus | None | Country Energy homepage |
| Energy Australia | 60c | Credit only | Credits expire quarterly | None | EnergyAustralia solar page |
| Lumo Energy (Formerly Victorian Electricity) | 60c (For premium FiT) | Credit only | Quarterly credit, credits are extinguished after 12 months and upon termination of contract (or 31 Dec 2024) | None | Lumo Energy Electricity Buyback Page |
| Origin Energy | 66c | Credit, cash surplus paid upon request | Quarterly credit, surplus yearly by cheque when more than $50 | Origin retains the right to acquire your RECs in the future | Origin Energy solar page |
| Red Energy | 66c | Credit, cash surplus paid upon request | Quarterly credit, 1 free yearly surplus via EFT/cheque | $10 admin fee on additional cash surplus payments | Red Energy homepage |
| Simply Energy | 60c | Credit, cash surplus paid upon request | Quarterly credit, surplus yearly | TBC | Simply Energy Homepage |
| TRUenergy | 66c | Credit, cash surplus paid upon request | Quarterly credit, cash surplus on case by case basis (generally when over $100 credit) via cheque | None | TRUenergy homepage |
| Diamond Energy | 68c | Credit, cash surplus paid upon request | Cash back on quarterly/monthly bills if surplus is over $50 | None | Diamond Energy homepage |
Queensland
Queensland also operates a net feed in tariff scheme, meaning owners are paid only for the surplus energy they feed back into the grid. The Queensland government-mandated solar feed-in tariff rate is 44c. Any rates higher than this base rate are contributions from the retailer.
Update 3 November 2011: There is speculation that the Queensland Solar Bonus Feed-in Tariff will be ended in the coming months. Read about the factors that might influence a change to the most generous State solar incentive scheme left in Australia–The future of the Queensland Solar Bonus Feed-in Tariff Scheme.
(Read about changes to eligibility under the Queensland Solar Bonus Scheme Feed-in Tariff.)
For further information on the Queensland feed in tariff see the Queensland Government Solar Bonus Scheme website.
| Retailer | Tariff payable | Cash or Credit? | Website |
| (cents per kWh) | |||
| AGL | 52c | Credit, surplus paid upon request | AGL solar homepage |
| Australian Power and Gas | 44c | Credit | Australian power and gas homepage |
| Country Energy | 44c | TBC | Country Energy homepage |
| Energy Australia | 44c | Credit, surplus paid upon request | EnergyAustralia solar page |
| Energex | 44c | Credit, surplus paid upon request | Energex solar page |
| Ergon | 44c | Credit, surplus paid upon request | Ergon solar page |
| Integral Energy | 44c | Credit, surplus paid upon request | Integral Energy solar page |
| Origin Energy | 50c | Credit, surplus paid upon request | Origin Energy solar page |
| Queensland Electricity | 44c | Credit, surplus paid upon request | Queensland Electricity homepage |
| TRUenergy | 44c | TBC | TRUenergy homepage |
South Australia
South Australia also operates a net feed in tariff scheme, meaning owners are paid only for the surplus energy they feed back into the grid. The SA government-mandated feed-in tariff rate is currently 44c/kWh. Any rates higher than this base rate are contributions from the retailer.
Update 30 September 2011: The South Australia Feed-in Tariff has entered a new phase: a transitionary scheme is now in place the South Australia solar feed-in tariff rate is now 22c/kWh.
For further information on the South Australian feed in tariff see the South Australian Climate Change website.
| Retailer | Tariff payable (cents per kWh) |
Cash or Credit? | Payment frequency and method | Additional Fees? | Website |
| AGL | 52c | Credit, surplus paid upon request | TBC | TBC | AGL solar homepage |
| Australian Power and Gas | No offering yet | TBC | TBC | TBC | Australian power and gas homepage |
| Origin Energy | 50c | Credit, surplus paid upon request | TBC | TBC | Origin Energy solar page |
| Simply Energy | 44c | Credit, surplus paid upon request | TBC | TBC | Simply Energy Homepage |
| South Australian Electricity | 44c | Credit, surplus paid upon request | TBC | TBC | Queensland Electricity homepage |
| TRUenergy | 50c | Credit, surplus paid upon request | TBC | TBC | TRUenergy homepage |
Western Australia
Western Australia’s solar feed-in tariff program closed its doors to new applicants as of 1 August 2011. However, Horizon power customers are still offered a 1:1 net feed-in tariff, where customers are paid for electricity they generate and feed to the grid at the same rate they pay for electricity.
For further information on the WA feed-in tariff past and present, visit the WA Sustainable Energy Development Office website.
| Retailer | Tariff payable (cents per kWh) |
Cash or Credit? | Payment frequency and method | Additional Fees? | Website |
| Horizon Power | At purchase rate (1:1 net tariff) | Credit | Quarterly | TBC | Horizon Power renewables webpage |
| Synergy Energy | 7c | Credit | Quarterly | TBC | Synergy Energy renewables webpage |
ACT
The ACT also has a gross feed in tariff, paying owners for every kWh of solar energy they generate, whether they consume it or export it to the grid.
For more information on the ACT gross feed in tariff scheme see the fact sheet on the ACT Department of Enviornment Climate Change Energy and Water website.
| Retailer | Tariff payable | Cash or Credit? | Website |
| (cents per kWh) | |||
| ActewAGL | 1:1 (Feed-in tariff rate equivalent to the price of retail electricity) | Credit, surplus paid upon request | ActewAGL solar energy page |
| Energy Australia | 1:1 (Feed-in tariff rate equivalent to the price of retail electricity) | Credit, surplus paid upon request | EnergyAustralia solar page |
Northern Territory
The Norther Territory has a net feed in tariff operating in Alice Springs only. In other parts of the Territory power owners will only receive the market rate for fed in electricity.
For information on the Alice Springs Solar Cities scheme see their dedicated website.
| Retailer | Tariff payable (cents per kWh) |
Cash or Credit? | Payment frequency and method | Additional Fees? | Website |
| NT Power and Water Authority | 45.76 c capped at $5 per day, 23.11c for each kWh above $5 per day in Alice Springs, At purchase rate elsewhere in NT |
Credit, surplus paid upon request | TBC | TBC | NT Power and Water Authority homepage |
Tasmania
Tasmania does not currently have a feed in tariff program. At the moment the monopoly electricity provider in Tasmania only pays the market rate. A feed in tariff scheme is currently under consideration. For details please see the Tasmanian Department of Energy Infrastructure and Resources webpage on solar feed in tariffs.
| Retailer | Tariff payable (cents per kWh) |
Cash or Credit? | Payment frequency and method | Additional Fees? | Website |
| Aurora Energy | 1:1 (Feed-in tariff rate equivalent to the price of retail electricity) | Credit | Quarterly | TBC | Aurora Energy solar page |
–This article was last updated on 19 August 2011–
Kobad Bhavnagri
Solar Energy Consultant
and
James Martin
Solar Energy Analyst
© 2010 Solar Choice Pty Ltd
{ 8 comments… read them below or add one }
why does victorian power suppliers pay mor than nsw
Hi Daniel,
At the moment, based on the information we have, some power suppliers are paying slightly more per kWh in Victoria than they do NSW, however, this may change very soon. The main reason for this is that the NSW scheme has only just come into operation (on the 1st of January 2010) and many of the power providers are still putting their deals together. One could expect that just as in Victoria, Queensland and SA some of the larger electricity providers (like AGL, TruEnergy and Origin) will pay a slight premium on the mandatory feed in tariff rate set by the government (60c in Vic and NSW, 44c in Qld and SA) as they compete to attract these valuable customers.
However, there is something very important to note here. The Victorian, Queensland and SA schemes are NET feed in tariffs (you’re paid for only the excess electricity you feed back into the grid), whilst the NSW scheme is a GROSS feed in tariff (you’re paid for ALL the electricity your cells generate, including what you consume). So for the same system you will be earning several times more in NSW then you would in Victoria or any of the other states. For this reason it’s possible electricity providers may not want to pay a premium in NSW, however, it really doesn’t matter as you’ll be way up in any case.
Kobad Bhavnagri
Solar Energy Consultant
Solar Choice Pty Ltd
are the premium rates (vic) inc or ex gst?
agl clearly states 68c ex gst.
origin clearly states 66 inc gst.
red is clearly 66 inc gst/60 ex gst.
the legislation doesnt specify gst in its mandated rates AFAICT.
domestic exported power is credited as ex gst as the retailer pays the gst component I think.
What is the real story?
If the above is correct, then agl is heaps better.
EA has updated their website.
Please update the EA Solar Q&A link in your page to the following:
http://www.energyaustralia.com.au/State/NSW/Residential/Products-and-services/Solar-power/NSW-Solar-Bonus-Scheme-Questions-and-Answers.aspx
Link updated!
I am a member of Stayz Holiday rentals and they have suggested that we look at your offer of installing solar panels on our hokiday rental accomodation.
My contact details are 044 898 7968
Perth Western Australia
Thank-you Sidney Mytton-Watson
Hi,
just want to clarify on the 28c feed in tariff offered by AGL. I have contacted them and they say that this is a computer error with them paying the old tariff (20c) and the new one (8c) at the same time and they are working to fix this.
Have you heard otherwise?
Hi Alan,
Thanks for your comment. Just to reconfirm, I called up AGL and spoke to Rob in Customer Resolutions, who said that they have received a number of inquiries about the 28c/kWh rate, and that it is ‘under review’ but is definitely available for new sign-ups, at least for the time being. He wasn’t sure if the generous rate was due to a computer error or not (he seemed doubtful about this).
You’ll notice that AGL is not publicising the 28c/kWh rate anywhere on their web site, and in my experience have only disclosed it when asked directly. When we first heard that AGL was offering this much, we were all a bit taken aback–this is more generous than the new Victorian Feed-in Tariff rate of 25c/kWh.