Solar Feed In Tariff Victoria: Solar Credits Slashed by a Third

Solar Feed In Tariff Victoria
The Solar Feed-In Tariff is dropping again! Learn how a VPP and solar battery can earn you passive income

 

Does it ever feel like the powers that be are angry at you for going solar?

Victoria’s regulators have announced they’re slashing their recommended tariff. This tariff decides how much credit you get for sending power to the grid. From July 1st, the minimum solar feed-in tariff will be cut from $0.102/kwh to $0.067/kwh. That’s a whopping cut of more than a third!

The solar tariff will be the lowest it’s been since 2016. On top of that, many solar households are bumping up against new solar export limits. That means the amount of power you can send back to the grid is limited. And if that wasn’t enough, the government is considering shutting off your solar panels in times of oversupply. It’s one thing not to let you sell your excess power back to the grid. But at some point, they won’t even let you use your own power!

You can only sell what they let you, and even then – you only get what they’re willing to pay you. And that rate is about to get slashed again.

Enough’s enough! Now’s the time to ask the tough question: Are solar tariffs really still the best way to make income from your solar system?

That might be a tough question, but it’s an easy answer. No.

Here’s the good news. The ShineHub Community VPP is a viable way to earn passive income from a solar and battery system. By joining our VPP, you can support the grid while getting paid a premium of $0.45/kWh whenever the VPP uses your battery.

Ready to set your own rules? Talk to our solar experts and find out how to join our VPP today.

Why the Solar Feed In Tariff is Dropping and What it Means to You

Let’s face facts: the days of solar feed-in credits cancelling out your power bill are over.

With so many households adopting solar, too much power is being created during the day. In fact, Australia’s home solar systems often create more power than the grid can handle. On the one hand, it’s great that so many people are going solar. On the other hand, the overload can result in real problems for the grid, including blackouts. That’s why we’re seeing drastic cuts to tariffs as well as more severe measures like the government shutting off your solar panels during times of of excess energy.

But here’s the thing about the grid: it can’t stand alone. It’s too old, too broken, and too slow. When there’s too much power flowing into it, you get blackouts. And when there’s too much power flowing from it, you get power surges. What the grid needs is a way to help smooth out its spikes and valleys.

There are a few possible solutions to this problem. But most of them involve dangerous or damaging processes such as fracking for natural gas. What we need is a better, more sustainable way to help the grid manage its ups and downs.

That’s where VPPs come in.

VPPs – The Smart Way Forward

VPPs are among the most reliable and sustainable ways to help stabilise the grid. A VPP is basically a network of home solar batteries that can provide support to the grid on demand. When the grid needs more power, it can draw it from home batteries, And when it has too much power, it can send some of the extra straight to those batteries. And because these batteries are providing valuable support and replacing expensive fossil fuel services, the homeowners are compensated.

And unlike other solutions to this problem – *cough* natural gas *cough* – VPPs are a win-win. They’re responsible, sustainable, and more responsive. As a software-based solution, a VPP can rapidly respond to the needs of the grid, offering more stable power for everyone. All without contributing to future ecological disasters.

For the participants, the benefits are numerous. You get paid a premium rate for helping the grid, which amounts to passive income for your household. And since you have a battery, you’re already generating and storing almost all the power you need to run your home. That means that the plummeting solar feed-in tariff will barely affect you. PLUS you get payments every time the VPP uses your battery.

With tariffs dropping, joining a VPP has become the best way to make extra money from your solar and battery system.

The ShineHub Community VPP

The ShineHub Community VPP offers a new way to make passive income from your solar and battery system.

With the ShineHub Community VPP, you get a premium rate of $0.45/kW whenever your battery is used by the VPP. On top of that payment, you also get your normal tariff, but you get to pick and choose the energy retailer you work with. That freedom ensures you’re always getting the best possible price for your energy.

That bears repeating. You get a premium rate of $0.45/kW. Every. Single. Time. And that’s on top of the ordinary solar feed-in tariff.

The boom times of the feed-in tariff are in the past. It’s now as low as it’s been in the last half-decade. And it’s unlikely it will ever rise back to a level where it can do serious damage to your power bill. It’s time to change our way of looking at solar.

VPP credits are the new solar feed-in credit. With the ShineHub Community VPP, you get paid a premium rate every time your battery is used by the grid. It doesn’t matter if you’re sending excess power to the grid or getting extra power from the grid. You get paid $0.45/kW every time. That’s passive income just for having a solar & battery system in your home. And since you’re already storing all the power you need for your own home, that income is basically a bonus that can send your energy costs into credit. Imagine making money every quarter instead of paying.

Actually, you don’t have to imagine.

Make sure that solar power always makes financial sense. Talk to our experts about joining the ShineHub Community VPP.

Alex Georgiou
Alex Georgiou

Alex is a home energy expert with experience across virtually every area of the industry, ranging from energy efficiency and smart home gear to the latest solar and battery technologies. As co-founder of ShineHub, he is responsible for delivering the best digital experience in the industry for customers as well as managing customer-facing communications.

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