Victoria solar feed in tariffs to vary based on time.

Victoria solar feed in tariffs – the state’s Essential Services Commission has this week released the details of a brand new feed in tariff (FiT) which changes depending on the hour of the day. It will be introduced to Victoria on July 1. Whilst not compulsory to begin with due to their complicated nature, the tariffs will likely be enforced in 2019/20.

Victoria solar feed in tariffs overview

Victoria solar feed in tariffs - Essential Services Commission
Victoria solar feed in tariffs – Essential Services Commission (source: esc.vic.gov.au)

Changing from a flat FiT to one that is more in life with electricity demand makes sense given that a major problem for solar energy is dealing with supplying power in peak times and during heatwaves. Previously solar feed-in tariffs were calculated on a flat basis, and, although they’ve been raised recently, it’s been neglecting the idea that offering more money for people to feed power back into the grid via a ‘virtual power station’ is likely to help mitigate periods where electricity is unavailable or at a ridiculously high price. 

The idea of a ‘virtual power plant‘ is something being worked at via a supplier level (The AGL Virtual Power Plant‘), a state level (ACT’s Next Generation Energy Storage Program) and a combination of the two (Tesla’s virtual power plant in South Australia). This marks the first time they’ve tried to do this via varying FiTs, however., 

According to RenewEconomy, the regulations will require retailers pay a minimum of 29c per kWh for those who exporting power between 3pm and 9pm, a minimum rate of 10.3c per kWh those feeding power back into the grid between 7am and 3pm, and a minimum rate of 7.1c/kWh (which is actually less than the current price of 7.2c) for those exporting energy during off-peak hours – during 10pm and 7am. So, if people want, for 2018 they can pay an alternative flat rate of 9.9c/kWh, down 1.3c/kWh from the previous flat rate. 

The ESC said that the lower cost for the flat rate from modelling from ACIL Allen. This modelling showed that the “any-time price”of electricity has fallen, but the evening peak price is now higher, and that the constant addition of solar connections will lead to even lower day time prices.

 

 

Tesla Virtual Power Plant in SA

A Tesla Virtual Power Plant will be built in South Australia, comprising of 50,000 home solar and battery systems state-wide. The deal between the South Australian Government and Elon Musk’s Tesla was announced last week by Premier Jay Weatherill ahead of the SA March state election. 

The SA government have pledged to do their part in the implementation of the virtual power plant scheme with a $2 million grant and a $30 million loan from the state Renewable Technology Fund.

Tesla Virtual Power Plant

According to Premier Weatherill, a trial of the scheme has already begun in Housing Trust properties, with 100 properties to receive their systems by EOFY (June 30), and another 1,000 in FY 18/19. After the trial is complete another 24,000 Housing Trust properties will receive the systems. 

Since there’s no word yet on the Tesla Powerwall 3 release date, they’ll use the Powerwall 2 batteries which have a 13.5kWh size. 5kW solar arrays will also be used for the 50,000 homes included in the virtual power plant. No word yet on the specifics of the solar panels the arrays will consist of but we’ll bring you that information as it becomes available.

Tesla Virtual Power Plant - Powerwall 2 Solar Battery
Tesla Virtual Power Plant – Powerwall 2 Solar Battery (source: tesla.com)

A statement from Tesla was released: 

“When the South Australian Government invited submissions for innovation in renewables and storage, Tesla’s proposal to create a virtual power plant with 250 megawatts of solar energy and 650 megawatt hours of battery storage was successful. A virtual power plant utilises Tesla Powerwall batteries to store energy collectively from thousands of homes with solar panels. At key moments, the virtual power plant could provide as much capacity as a large gas turbine or coal power plant.”

Danny Price of Frontier Economics discussed the program with the ABC:

“The biggest saving for consumers is that they don’t have to pay for as much network cost to deliver power to them because they’re generating their own power,” Price said.

Zoe Bettison, the Minister for Social Housing, discussed the reason they are installing these solar + storage systems in Housing Trust properties:

“We know that people in social housing can often struggle meeting their everyday needs and this initiative will take some pressure off their household budget,” she said.

A mammoth deal and step forward for South Australian solar – we’ll bring you more information as it becomes available!