Electricity feed-in tariff

Electricity Feed-in Tariff Scheme

Overview

The ACT Electricity Feed-in Tariff Scheme rewards households and businesses that install renewable energy generation technology, such as solar or wind power systems, by paying for the electricity they generate.

The ACT scheme is a gross tariff scheme which means you are paid for each unit of electricity you generate. For each unit of renewable energy generated you will be paid more than the retail price you would usually pay for your electricity. You will be charged at the standard rate for the electricity you use during the same period.

Key eligibility

To qualify for the ACT Feed-in Tariff, you must:

• be an ACT electricity customer (schools and businesses are also eligible)
• have an approved renewable generation system installed (presently wind or solar) that is 30 kilowatts(kW) or less and is connected to the mains power grid
• enter into an agreement with your electricity retailer.

Homeowners, renters and landlords are eligible to apply. Renters should check with their landlord before installing energy generation systems.

A number of other conditions apply. Check your eligibility on the ACT Department of the Environment, Climate Change, Energy and Water website.

Items covered

The ACT Feed-in Tariff is available to customers with new and existing wind or solar power connections.

The Premium Price is set annually. However, when you enter into an arrangement with your electricity supplier you are guaranteed payment of the Premium Price prevailing at that time for the full 20 years of your agreement.

From 1 March 2009 until 30 June 2010 the Premium Price was:

• 50.05 cents per kWh of energy generated for systems up to 10kW
• 40.04 cents per kWh of energy generated for systems between 10kW and 30kW

From 1 July 2010 until 30 June 2011 the Premium Price is:

• 45.70 cents per kWh of energy generated for systems up to 30kW.

The revised Premium Price applies to Feed-in Tariff scheme contracts entered into from 1 July 2010 but not those entered into before this date.

For energy consumed in the same period, you will pay for the electricity you consume at the published standard rate.

Next steps

You need to apply to your electricity retailer to receive the premium payments under the scheme. To take the next step, make sure that you understand the program information before entering into an agreement with your electricity supplier.

If you receive any payments from Centrelink, you may need to check with them if your credits or payments have any impact on your Centrelink payments.

It is possible under some circumstances that credits or payments you receive for power generated by solar panels on your residence may be included as assessable for income tax. Further information should be sought from the Australian Taxation Office or your accountant or tax agent.

If you are registered for GST and install a renewable energy system with the intention of furthering a business, then GST will be applied to any income generated.

Other assistance

You could also be eligible for financial assistance to help with the cost of installing a small-scale solar or wind power system.

As an ACT resident, you may also be eligible for rebates and assistance from the ACT Government and the Australian Government.