Victorian Government announces end of minimum solar Feed-in Tariffs

Government of Victoria is removing its minimum payment for rooftop PV energy fed into the grid, following states like New South Wales and South Australia. Energy Minister Lily D’Ambrosio has recently confirmed that the change will allow retailers to discontinue feed-in tariff (FiT) payments. The Essential Services Commission (ESC) currently sets the FiT at 3.3 cents per kilowatt-hour. Victoria has over 700,000 solar-powered homes, including 300,000 installations supported by the Solar Homes Program. The government cites that the reason for the change is oversupply of daytime solar energy into grid has reduced wholesale electricity prices. While this lowers retail electricity costs, it also reduces financial returns for solar owners. Some retailers may continue payments, but the Australian Energy Market Operator (AEMO) has warned of potential grid instability. Experts predict increased battery demand, while the Smart Energy Council has opposed the decision, advocating for a national minimum FiT.