Home Property Australia Minimum feed-in tariff rate a win for industry

Minimum feed-in tariff rate a win for industry

  • August 28, 2014

Minimum feed-in tariff rate a win for industry

In a win for industry, the Essential Services Commission has announced its decision to adopt a minimum feed-in tariff rate of 6.2 cents per kilowatt hour, to apply during 2015.

The rate applies for excess electricity fed back into the grid from renewable energy generation systems, with a system size less than 100 kilowatts.

The Property Council has long advocated the use of feed-in tariffs as an instrument for improving the long term efficiency of the Victorian electricity sector. In our 2012 report, A Business Feed in Tariff for Victoria, the Property Council concluded that a sensible feed in tariff will drive additional investment in distributed energy if a financial business case is clear and acceptable to investors. By providing people with a financial return for the adoption of renewable energy, feed-in tariff schemes can help Victoria adapt to a more balanced energy portfolio and safeguard our competitiveness given the state’s historical reliance on brown coal.