Variable FiT July 1 2018

[Timbo001]

Hello,

I'm reading that the essential services commission (ESC) have announced changes to the solar feed in tariffs (FiT) effective July 1 2018. see link below.

In addition to a fixed FiT, energy retailers are being requested to offer either a variable FiT i.e. time of day/week varying FiT

https://www.esc.vic.gov.au/document/energy/56875-minimum-electricity-feed-tariffs-apply-1-july-2018-...

I'm interested to know if AGL will be offering a variable FiT 1 July 2018 or sticking with the flat rate?

Cheers 

[jayden_AGL]

Hey Timbo001,

Thank you for your post!

AGL have yet made on a decision on how we will adjust our rates in accordance with this announcement. However, you can rest assured that any changes to our rates will be announced on our website at least 10 business days before they take effect.

Kind regards,

Jayden

[HLF]

So 7 years later AGL have still not offered this alternative. No incentive to alter your usage patterns if your not going to be rewarded at peak times. 

[Lester]

Perhaps we'll see better offers soon HFL.

With so many batteries coming along now, there will be a LOT more people able and willing to help in peak usage times for a better deal on the floundering FITs we've seen in the past few years.

We are already seeing many offers from retailers for free energy for 3 hours a day, or low cost energy for 5 hours, and with peak tariffs on those very high, they will still obviously appeal to battery owners that can not be affected by peak tariffs.

I have seen some word of variable FITs interstate when searching for info, trials of peak hours 1800 - 2100 with higher FIT, perhaps no fit in solar soak, which again doesn't affect battery owners.

I think if retailers don't make the move to more flexible FITs, they will end up losing consumers to the likes of Amber, LocalVolts, Flow Power, and likely more coming along in the future.

While all of these are limited in states they are operating in, Amber being the only one (I think) now operating in all the NEM states, they others will spread to the NEM states as time goes on.

Retailers will still make $, as they won't have to buy as much from the traditional hugely volatile grid generation prices in peak usage hours, and should still be able to make a normal margin.

AGL are pretty progressive behind the scenes, with lots of trials going on for solar, batteries, ev's etc.

Meanwhile, one can look around, watch their usage, and try and tread water on power costs as best they can.

It's a shame how this has developed, I feel we are likely to see some more pain yet in households, and loss of more small business, industry / manufacturing.

[Lester]

..

I just found an example for variable FITs offered in SA.

**

Keep in mind, companies operate and charge vastly different tariffs and supply charges in every state and sometimes state regions.

You have to look up your individual address to get your rates.

You must be on a digital smart meter to get these offers, 2 way comms via metering are needed for solar / battery feed and usage, as well as interval times for variable feed in and usage.

**

Offered by a competitor to AGL, they offer my address . . .

Higher than normal daily supply charge @ $1.65/day

FIT between 6pm and 9pm - 30c

Nil FIT all other times !!

Peak rates 5pm - 9pm VERY high at 85c, other peak very much lower than my usual (less 16c long shoulder !)

Very low usage tariff 10am - 4pm 8c, great time to use power (your own solar free or from grid) or top off a battery.

Obviously this plan is ONLY for those with a decent sized battery (maybe 20kwh and preferably good sized PV 10kw + ?), a set up that can guarantee no usage EVER from the grid 5pm - 9pm.

Further the system needs to be able to feed in a good amount of battery for the 30c FIT for the 3 hours 6pm - 9pm.

To dump a lot and keep you home usage covered, you really need that good size battery, and if you have it with your DNSP, flexible exports up to 10kw is handy, although 5kw would be ample for an avg 10kwh - 20kwh of battery.

I would need 20kwh of battery to allow me a (very) safe 10kwh for the home usage between production / charging hours, and that leaves 10kwh to export, a bit more would be sweet, but cost and ROI ? Perhaps.

3 phase would be good where you have a much larger battery and can drop that much per phase.

Battery size and export rules / allowance also has to be approved by the relative DNSP.

Things are changing, so we might soon see this sort of offer coming from AGL and other retailers too.

[John-T]

@Lester 

What really gets me are the DNSP's and Retailers screaming about the grid being overloaded during the middle of the day yet I do not see the offer of cheap EV charging rates at this overloaded part of the day. Not everyone has solar so why not make it a little cheaper to use energy in the middle of the day.

I have several neighbors with EV's and one posed this question to me.

Maybe I am way off the mark here but what the heck. 🙂

John

Solar Savers

Endeavour Energy

N.S.W

[Lester]

Certainly retailers will have to adapt to the solar soak glut of power in the grid, though many with solar now taking up batteries may lead to less of an excess, with those people saving their excess solar to their batteries (first).

As shown above, there are changes happening, but it may take a short while for decisions to be made based on how the whole battery thing works out with grid support and excess energy.

Perhaps your friends with EVs can look at AGLs 3 for free deal, which is the same sort of deal as their budget arm Ovo, both with free 3 hrs of energy from 1100-1400.
If they have a 7kwh charger, that's possibly enough for an average days use.

Having EVs, they can take up the AGL EV Night Saver plan perhaps (?? check if available locally there ??), this gives you 6 hrs 0000-0600 at 8c, and that's for ALL power going into the home . . . put the washer and dishwasher etc on timers to use at this rate too.

[HLF]

Yep, 100% Retailers not moving with the times, to encourage more use during the day with low rates then supply higher fit in the evenings. They want to give you nothing during the day then charge more at night. I have yet to see a plan where the consumer is compensated fairly. Retailers will and up with less customers as some move to batteries.

[Lester]

It's certainly been going 'south' in solar only benefit, especially the past few years.

When I had solar put on late 2023, the FIT here in SA was 6c.

I feel it was just acceptable what you were paid in FIT back then, but most of our benefit was always going to be self consumption.

July 2024 the FIT dropped a third to 4c . . . July 2025 it dropped again, down half to 2c.

Now, with increased tariffs also through the approx 2-1/2 years, it's seen our bill climb quite substantially higher, possibly to the point where a battery is the way to go.

Yet more investment to keep things in check.

Still to properly analyse things in the coming months and see if it is something we'll do . . . possibly / probably, but I'm a little dubious about further rule changes once a lot of people are on battery to eliminate or almost reduce their bill.

Will more and more of the transmission charges be put onto daily supply charge to compensate falling usage, and see that go up dramatically ? 
Will more sun tax be applied in solar soak to wipe out the lowered FITs, and unless you have a hybrid inverter to curtail all exports to the grid, you will pay to send excess production to the grid ?

(Seems to be ironic this could happen, kind of defeats the renewables / net zero concept.)

So many unknowns, can't blame people for being a little dubious about a privatised energy network, and the evolving market affecting company profits, likely seeing ever evolving ways to keep the $ coming in.

[HLF]

Yes, I Agree with all your points of view.

The Grid seems to be getting more disorganised and untrustworthy as time progresses. The Retailers are not helping by reducing the fit lower and increasing connection fees and consumption generally. Although the consumption charges by the retailer I use were lowered but the connection fee raised. Victoria Fit 1.5c

With the retailers not keeping up with the changing grid condition and the plans they are offering will force more consumers towards batteries and limiting export to the grid. I have asked a potential solar installer if they can limit the new inverter if the rules get to out of hand. The Retailers are still in the mindset everyone is a consumer, but increasingly they are generator and consumer. There is no positive incentive to alter your energy use to benefit the greater energy system.