VPP Feed-In Tariffs Change
As of the 21st of May 2022, we are changing our VPP feed-in tariffs in line with wholesale market variations. This change goes beyond just the rates - moving forward, all current, new, and future Discover Energy VPP customers will be transitioned to our Flexible Solar Feed-in model.
Our new Flexible Solar Feed-in model is similar to a Time Of Use tariff, in that your feed-in rates will change throughout the day depending on when your excess solar energy is fed into the grid. The table below shows what rates apply at what times of day according to what state you're in.
|Solar Peak||7 days 7pm-11pm||30||30||30||30|
|Solar Shoulder||7 days 6am-10am, 5pm-7pm||10||10||10||7|
|Solar Sponge||7 days 10am-5pm||3||3||3||1|
|Solar Off Peak||All other times||15||15||15||15|
If you are a current VPP customer of Discover Energy, you will receive notification of any changes to your offer in writing a minimum of 5 business days before the changes come into effect.
Why are my feed-in tariffs changing?
Reductions in feed in tariffs are being driven by ongoing low wholesale prices in the National Electricity Market during the middle of the day.
The prices are being driven down during this period due to the large amount of solar being exported to the grid from household roof tops and solar farms.
Frequently, the volume of energy available to the market during peak sunlight hours exceeds the volume of demand at the time. Wholesale prices respond to supply and demand, and the current volumes of supply during the peak solar generating hours will often see the wholesale prices become negative because there is too much supply.
While the wholesale price is negative, retailers essentially pay the relevant network to take the excess solar energy their customers produce. This is on top of the feed-in rates the retailer already pays their customers, meaning the retailer is paying twice for solar feed-in. With the wholesale price being consistently lower and more frequently negative in the middle of the day, this is an our old model has become unsustainable, meaning we've needed to adapt.
What other options are available to me?
People use energy in different ways and have different systems, so there is no one size fits all solar plan that will work for everyone.
However, we believe that our new solar plans offer true cost reflective pricing per the wholesale prices paid for solar generation.
You can help minimise your energy costs by optimising how and when you consume energy - use more of your solar energy, use less energy from the grid, and reduce your consumption costs. If you have a solar storage solution, store more energy in the battery during low-cost periods and use more battery storage during high-cost periods.
We are working on multiple projects to try to ensure that customers can optimise the benefits of their solar and storage assets.
We are always exploring new ideas and technologies to provide new and exciting offers to everyone.
Is it still worth having/getting solar?
Yes, the benefits of solar far exceed the feed-in rate you are paid for excess solar generation. Every kWh of solar generation that you consume is a kWh of energy that you do not need to buy from the grid. It is also 100% renewable energy.
As newer and more advanced technologies come onto the market, we are hoping to see some of these reductions we are seeing in the middle of the day start to spread out to morning and evening periods as well. Consistent and sustainable lower wholesale costs will eventually produce lower grid consumption costs that everyone will benefit from.
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