Revised feed-in tariff scheme details announced in ACT

The ACT Minister for Energy, Simon Corbell, recently announced the ACT government’s decision to revise the premium price for the Electricity Feed-in Tariff Scheme to 45.7 c/kWh and that this price will remain in place for two years, adding: “I have also decided to allow generators with a capacity of more than 10 kW and up to 30 kW to receive the full premium price. Previously these generators were only eligible for 80% of the premium.”

The announcement follows the government’s acceptance of recommendations put forward by the Independent Competition and Regulatory Commission (ICRC) in its report on the Determination of Premium Rate, released on 15 March 2010.

“Fixing the premium price for the period of two years for new installations will maintain investor confidence and provides the community with certainty in their investment in renewable energy technologies,” continued Corbell. “Further, allowing larger installations to receive the full Premium price will act as a great incentive to businesses which want to be part of the nation-leading scheme.

“The feed-in tariff scheme has been a big success in the ACT, with an increase in the number of solar installations on ACT roofs of almost 200% in the first 12 months. This will further stimulate the growth of the ACT's clean economy and help reduce our greenhouse gas emissions and realise our goal of zero net emissions by 2060.”

The revised premium price in part reflects a reduction in the cost of installing solar PV systems. In addition, investors now have greater certainty as the Commonwealth has set the price of Renewable Energy Certificates (RECs) at $40 for small systems. The premium price will apply to Feed-in Tariff Scheme contracts entered into from 1 July, but not those entered into before this date, which will still attract the existing premium of 50.05 c/kWh. All contracts are valid for 20 years from the date of contract.

Under the revised premium price, a household installing a 1.5 kW system could expect to outlay a net amount of $3463 after receiving a rebate of $6038 for their 155 RECs. An installation of this size would pay back the system cost in six years, with a 16.9% rate of return.

Owners installing larger generators may also benefit from the changes. With access to 100% of the revised premium price, the ICRC estimates a 15 kW generator to cost $85,119 after a rebate of $17,000 for its 435 RECs, with a payback period of 11 years and 6.3% rate of return.

The government is currently considering an expansion of the Electricity Feed-in Tariff Scheme to installations beyond the current capacity limit of 30 kW.