Buyback and feed-in scheme FAQs
How does the ACT Government's Electricity Feed-in Renewable Energy Generation scheme work for ActewAGL Retail customers?
The operation of the ACT Government's Electricity Feed-in Renewable Energy Generation scheme for ActewAGL Retail customers is summarised below.
- The scheme is implemented as a gross feed-in system; customers will receive the applicable Premium Rate for every metered kilowatt hour (kWh) of electricity generated by their solar photovoltaic system.
The applicable Premium Rate is that rate published by the ACT Government on the date at which the customer applied for the Feed-in scheme.
This Premium Rate applies to all output from the generator over the legislated 20 year term.
The applicable Premium Rate will be determined by the size of your PVC system.
- For energy consumption, standard supply arrangements will apply. New and existing customers will pay for the electricity they consume at the rates published in ActewAGL’s Standard retail electricity supply – Schedule of Charges from 1 July each year.
Do I need to apply for the ACT Government's Electricity Feed-in Renewable Energy Generation scheme?
Yes, the scheme legislation states that customers must apply to their electricity retailer to receive the Feed-in Tariff. If you have an existing or connect a new solar photovoltaic system to the network and are an ActewAGL Retail customer, you will not automatically be switched to the scheme, you will default to the solar generation tariff until such time as you apply for the scheme.
Are the payments made to me under the ACT Government's Electricity Feed-in Renewable Energy Generation scheme subject to income tax or goods and services tax (GST)?
ActewAGL recommends that you discuss with your tax advisor whether payments received by you under the scheme are subject to income tax or GST.
Do I need to enter into an agreement with ActewAGL for the ACT Government's Electricity Feed-in Renewable Energy Generation scheme payments for the energy I generate?
The scheme legislation states that an eligible customer must apply for the scheme (that is, you will not default to the scheme premium rate for the energy you generate just because you have a generator connected to the electricity network). You will need to enter into an agreement with us to purchase the energy you generate and for you to receive the scheme payments. We will provide you with the application form and a copy of our agreement terms and conditions. You should familiarise yourself with the terms and conditions before you sign and return the application form to us.
How is the domestic Solar Buyback scheme different to the ACT Government's Electricity Feed-in Renewable Energy Generation scheme
The domestic Solar Buyback scheme is the existing scheme which outlines how ActewAGL will buy the energy back from its customers who generate solar energy. The ACT Government's Electricity Feed-in Renewable Energy Generation scheme offers a premium payment in comparison to the Solar Buyback scheme.
Will the ACT Government's Electricity Feed-in Renewable Energy Generation scheme reduce the pay back period on my solar panel purchase?
When Mick Gentleman's original Feed-in Tariff scheme was developed, the explanatory statement indicated that the Bill had been designed to provide a framework that enables a capital investment into renewable energy electricity generation, to be recouped within a 10 year period. Customers will however need to make their own enquiries and calculations to determine the value of the ACT Government's Electricity Feed-in Renewable Energy Generation scheme Scheme for their own circumstances.
How do I know which rate will apply?
The ACT Government can change the Feed-in Tariff premium rate at the end of each financial year. This change only affects new contracts (the rate in existing contracts does not change). For new contracts, the appropriate rate is determined by the completion of two activities:
- ActewAGL receives your application for the Feed-in Scheme
- The solar system’s meter and grid connection are installed
The applicable rate is determined by when both of the above activities have occurred. If this is before 1 July 2010, this amount will be 50.05 cents per kilowatt hour (kWh) generated for systems with a capacity up to 10 kilowatts (kW). For systems with a capacity between 10kW and 30kW a rate of 40.04 cents per kWh will be paid. If this date is between 1 July 2010 and 30 June 2011 this amount will be 45.7 cents per kWh generated for systems with a capacity up to 30kW.
When will my feed-in tariff payments begin?
If the feed-in tariff application is received by ActewAGL prior to the meter installation, payments will begin from date of installation.
If the application is received after the meter is installed, payment will start from either the date of your last feed-in meter read, or the date of its installation, whichever occurs later.
I do not wish to use the feed-in tariff to offset my account. How do I receive my feed-in tariff credits?
The default arrangement is for customers to receive payment for the electricity they generate as a credit against their electricity supply account.
If a customer wishes to receive their payment via alternative means they can contact ActewAGL on 13 14 93 to discuss their preferred payment method. At the customer’s request, ActewAGL can accommodate different payment methods such as a direct credit to the customer’s nominated bank account or cheque.
What if I move house?
The 20 year scheme payment applies to the generator. If you cease to be the occupier of the house where the generator is connected, your payments will cease. The new occupier of the house could choose to apply to their supplier to receive the payment in which case they will have the benefit of any remaining portion of the 20 years.
Where can I find details of the current premium rate for the Feed-in Scheme?
The premium rate is a Determination made under the Feed-In Act by a Disallowable Instrument and will be gazetted on the ACT Government's Legislation Register.
I am a pensioner. Do I need to report my feed-in tariff earnings as income for social security purposes?
Prior to 14 May 2010, all household solar feed-in tariffs paid by electricity retailers to pensioners under a State or Territory feed-in tariff scheme were assessed by Centrelink as income for social security pension purposes, whether paid through a cash payment or as an electric account credit.
From 14 May 2010, Centrelink will no longer count feed-in tariff amounts that are paid by an electricity retailer to pensioners as a credit on an electricity bill as income under the pension income test. However, feed-in tariff amounts that are paid to pensioners as cash, cheque or a direct deposit will be counted as income for social security purposes.
Individuals should contact Centrelink if they would like to discuss their individual circumstances in relation to the assessment of feed-in tariff payments.
Where can I find more information?
Information on applying for the ACT Government's Electricity Feed-in Renewable Energy Generation scheme through ActewAGL Retail can be obtained here or by calling us on 13 14 93.
ActewAGL Distribution is ACT's principal Distribution Network Service Provider (DNSP), and is responsible for the distribution of electricity to all distribution grid connected customers within the ACT under a regulatory framework. ActewAGL Distribution design, install, upgrade, repair and maintain the network assets (such as poles and cables) which make up the distribution network carrying the electrical energy to ACT homes and businesses. Access information on ActewAGL Distribution and the processes involved to get solar connected.
The ACT Government's Electricity Feed-in Renewable Energy Generation scheme has been designed by the ACT Government. Learn more about the legislation.
General inquiries about the ACT Government's Electricity Feed-in Renewable Energy Generation scheme or legislation may be directed to the ACT Department of the Environment, Climate Change, Energy and Water on 6207 5589.