In November 2009, Victoria introduced the premium feed-in tariff (PFiT) scheme, designed to incentivise the installation of solar systems by paying households 60 cents for every excess kilowatt hour of energy fed back into the grid. This scheme, set to run for 15 years, is scheduled to end in November 2024.

The PFiT scheme differs from the standard solar feed-in tariff, which is set annually by Victoria’s independent regulator. Households receiving a standard solar feed-in tariff will not be impacted by the changes to the PFiT scheme.

As the scheme concludes in November 2024, retailers will no longer be obliged to pass on these credits. The PFiT provided households, businesses and community organisations with small-scale solar systems of five kilowatts or less a credit of at least 60 cents per kilowatt hour for excess energy fed back into the grid. Over 88,000 Victorian households, small businesses and community groups have benefited from the PFiT.

For early adopters benefiting from this scheme, now is an opportune time to explore new ways to reduce energy costs once the PFiT ends.

What is a Feed-in Tariff (FIT)?

A FIT is a credit deducted from your electricity bill for the excess solar production sent back to the grid. It is calculated in cents per kilowatt hour (c/kWh). Current tariff rates in Victoria range from 4.9c to 12c.

What is a Premium Feed-in Tariff (PFiT)? 

PFiT’s are long term agreements made with early adopters of solar (2009-2012) that set a specific price for excess solar energy fed back into the grid. These rates, typically between 50-80c per kWh, most commonly around 66c, are expected to end on November 1st, 2024.

How to Find Your Feed-in Tariff Rate? 

Your current tariff can be found on your electricity bill under the ‘usage’ section, often listed as ‘Solar Export’.

Can you Negotiate a FIT Rate? 

Yes, it is possible to negotiate a FIT rate, and it is recommended. It’s advisable to wait for the initial 3-4 months after installation to see what your energy provider offers.

What to Do if Your System Isn’t Working and You Have the High FIT Rate?

If you notice no solar production, contact us immediately. We can help get your system back up and running.

Can You Upgrade Your System and Keep Your PFiT?

Unfortunately, the contracts for PFiT do not allow you to increase the size of your system while maintaining your PFiT.

Is It Worthwhile Increasing the Size of Your System and Losing Your PFiT?

This depends on your specific situation. If your system is still exporting a significant amount and generating a lot of credit, it might be best to keep it as it. If it’s exporting little to nothing,  increasing the system size might reduce your power bill more effectively. Contact our team to discuss the best solution for you.

With the end of the PFiT scheme, it’s crucial to prepare for the future. Velocity Solar can help you continue making savings by installing additional solar panels or a battery system. These upgrades can maximise your solar energy use, reduce reliance on the grid, and help maintain low energy costs even without the premium tariff.

Don’t wait until the PFiT scheme ends to start planning! Contact Velocity Solar today to learn how we can help you transition smoothly and continue enjoying the benefits of solar energy.

Phone: 03 5243 8364 OR fill out our online contact form

https://www.solar.vic.gov.au/what-do-after-your-feed-tariff-ends