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Friday, 02 September 2011 11:27

Solar support downgraded

What you need to know

Yesterday, the Victorian Government announced that it will close the Premium Feed-in Tariff when the scheme hits its cap. This is expected to occur towards the end of November this year.

If you have recently installed solar, paid a deposit or purchased a solar system, but have not yet finalised all the arrangements to receive the Premium Feed-in Tariff -  read on!

Below are detailed instructions on what you need to do to have the best chance of getting in before the scheme closes.

If you're about to install solar, the Government has said you're unlikely to get in before the cap is reached. Instead, you may be eligible for a Transitional Feed-in Tariff at a lower rate of 25c. There's more information about this transitional arrangement below.

Oh, and if you're already receiving the Premium Feed-in Tariff have no fear! This announcement doesn't affect you at all. You will continue to receive the Premium Feed-in Tariff for fifteen years or (depending on when your system was installed) until the end of the scheme in 2024.

What you need to do if you've recently installed or purchased solar

In short, the scheme will be closed when the 100 megawatt cap is reached. There is no certainty about when this will happen exactly, but it is expected in late November this year.

In order to ensure you have the best chance of getting in before the cap is reached, you have to take the following steps before 30 September. Even though this is the formal deadline, there is still uncertainty about when the scheme will close, so we suggest you take these steps as soon as possible:

  1. Panels installed: Get your solar panels installed.
  2. Feed-in Tariff contract finalised: Get a Premium Feed-in Tariff contract in place with your electricity retailer. Every retailer has a different process for this, but basically you need to have some form of confirmation from the retailer that you have an agreement in place. If you're not sure, call them and confirm. We advise that when speaking with your electricity retailer you ask for a reference number for the call and the name of the consultant for your personal records to help track the progress of your application.
  3. Forms sent: Make sure that the following three forms have been lodged with your electricity supplier: (A) the Solar Connection Form, which requests the installation of a bi-directional meter or reprogramming of a meter (B) the Electrical Work Request form and (C) the Certificate of Electrical Safety. There is a lot of detailed information about these forms (and other forms relating to solar panels) via the links above and on this Government website. The installer will usually lodge these forms for you when they install your system.

Unfortunately, that's not all you need to do. The scheme is expected to close in late November 2011, but this could happen earlier. Before the scheme closes, you also need to have taken the following further step. Again, we recommend you do this as soon as possible:

  1. Meter installed: Have a bi-directional meter installed and connected to the grid. The Solar Connection Form (see above) is essentially a request for the electricity supplier to install one of these meters or (if you already have one installed) reprogram the meter to allow it to read your solar power generation. You will be required to pay a fee for this. If smart meters have not yet been installed in your street, you will need to get a bi-directional meter installed, and later it may be replaced with a smart meter.

There is more information on the Department of Primary Industries' questions and answers web page.

Very important points!

Many solar customers find these processes a bit difficult. To make things easier, you should:

  • For each step, make sure you keep copies of paperwork and request reference numbers if you speak to your electricity retailer, supplier or solar panel installer.
  • Keep following up on each step by calling the relevant organisation, particularly your electricity retailer to make sure that your feed-in tariff contract is in place, and your electricity supplier to get them out to install or reprogram your meter.

If you're unsure who your electricity retailer or electricity supplier is:

  • Your electricity retailer is the business whose name is on your bills.
  • You can find out who your electricity supplier is on this website.

If you've installed solar through our DCES project, EnviroGroup will be available to help you through this process.

Is it still worth installing solar?

Solar is still a great option for households wanting to reduce their energy bills, protect against future electricity price rises and reduce their environmental impact by generating their own clean energy at home. This decision will reduce the return on investment, and so might make solar less attractive for some. But in the long run, we reckon it's a good bet for your home and the environment.

Solar customers in Victoria will also still receive value for excess electricity from their solar panels that is returned to the electricity network. The Government has said it will be introducing a transitional feed-in tariff from 1 January 2012 at a reduced rate of 25 cents for solar customers who do not get in before the Premium Feed-in Tariff is closed. More information on this policy are available from the Energy Minister's media release.

We expect more details of the transitional feed-in tariff to be announced soon, and we will be providing more information on this blog. Our media release on the announcement is available for download on our website, and we will be continuing to advocate on behalf of our members and the Moreland community for the Government to support those who choose solar.

Last modified on Tuesday, 20 September 2011 13:22

5 comments

  • Comment Link Brad Shone Wednesday, 09 May 2012 13:39 posted by Brad Shone

    Hi Richard,
    I can understand your frustration. At present, the arrangement between customers and distribution businesses is only via the retailers. So the distribution businesses (in your case Jemena) have no obligation to respond to you directly. And in fact, they have difficulty in doing so, as they are simply not resourced to do that.
    The correct approach for you to follow is for you to contact your electricity retailer and ask them to act on your behalf and find out when the job will be done by Jemena. They are obliged to do this for you; it is their role to be the intermediary for you, as per the energy market structure as it is at present. So don't take no for an answer.
    I know this will be of no comfort to you, but this will all change as of July 1 when the industry structure changes and the relationship becomes a triangular one, whereby you will have a direct relationship with the distribution business. They will then be obliged to respond to your calls and requests.
    If you have any difficulties with this, please contact me directly at MEFL, on the contact form via the 'Who We Are' pages of this website.
    Cheers, Brad

  • Comment Link Richard Grant Monday, 30 April 2012 17:52 posted by Richard Grant

    Have had solar panels installed. New smart Meter installed and three weeks later waiting for Jemena to "recalibrate" so we can get started using solar power. This has become frustrating with a $6000 investment and repeatedly hand balled by Jemena Customer Services to a recorded message. Any suggestions on how I can find out when the work is going to be finalised.

  • Comment Link Eli Court Tuesday, 20 September 2011 13:18 posted by Eli Court

    Hi Dan, yes, the Department has changed the information.

    It has also included a lot more information, particularly on the 'questions and answers page' - http://new.dpi.vic.gov.au/energy/sustainable-energy/solar-energy/solar-energy-for-consumers/feed-in-tariffs/premium-feed-in-tariff/about-the-closure

    I have amended the information above.

    I hope this helps, and thanks for bringing this to our attention.
    ~Eli

  • Comment Link Eli Court Monday, 19 September 2011 14:47 posted by Eli Court

    Hi Dan, thanks for that. It appears that the information from the Department may have changed.

    We will look into it.

    ~Eli (MEFL)

  • Comment Link Dan Monday, 19 September 2011 14:13 posted by Dan

    Regarding: "Credits being applied to your account: To check if credits are being applied to your account, you will need to call your electricity retailer and ask them if you are receiving credits for your solar power onto your account."

    Called ombudsman office who then contacted DPI. Was told that the 'credit applied' requirement is not accurate as it is impossible (?) to obtain before the next reading which is in 3-month cycle.

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