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™ AUSTRALIA MARKET GUIDE WHAT’S INSIDE SECTION 1: General market overview SECTION 2: Viridian and Click Energy SECTION 3: How to sign up © 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, is strictly prohibited. SEPTEMBER 2016 GENERAL MARKET OVERVIEW Brisbane Adelaide Sydney Canberra Melbourne ELECTRIC NATURAL GAS © 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 2 is strictly prohibited. Market Snapshot The National Electricity Market (NEM) is the wholesale electricity market that delivers electricity to almost 10 million homes and businesses in Australia. Established in December 1998, it’s one of the largest geographically interconnected power systems in the world, covering a distance of approximately 4,500 kilometres through New South Wales, Queensland, South Australia, Victoria, Tasmania and the Australian Capital Territory. The aim of the NEM is to make sure electricity is available when it’s needed, in a cost effective and reliable way. There are three main participants in the NEM: • Generators, which are coal, natural gas and renewable power stations that sell electricity to the market. • Distributors, who own and manage the infrastructure (poles and cables) which bring the electricity to residential and business customers. • Retailers, who buy electricity from the market. They then sell electricity on to residential and business customers. Click Energy is an Energy Retailer in Australia. Out of the 10 million residential consumers in Australia, the following percentages have switched to a market contract:1 • Victoria: 88% • South Australia: 84% • New South Wales: 69% • Queensland: 46% What is a distributor? Distributors are a core part of the constant supply of electricity and gas into homes and businesses. For electricity, distributors own and manage the poles and cables which deliver power. Gas distributors own and manage the pipelines which distribute gas across the country. A customer does not have a choice as to which distributor they use, as location of their property will determine this. Who are the distributors? Distributors are different in every state. Some states have more than one distributor. Below is a list of the distributors in New South Wales, Queensland, Victoria and South Australia. ELECTRICITY GAS New South Wales (NSW) Victoria (VIC) South Australia (SA) Victoria (VIC) Ausgrid AusNet Services SA Power Networks AusNet Services Endeavour CitiPower Multinet Gas Essential Energy Jemena Australian Gas Networks Queensland (QLD) Powercor Australia Energex United Energy 1. Source: State of the Energy Market 2015, published by the Australian Energy Regulator (AER) © 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 3 is strictly prohibited. What is Deregulation? Rather than the state government determining the price that customers pay for electricity and gas in that state, some states have allowed for private companies to compete for customers’ business. This is called deregulation. The deregulation of the energy industry in Australia started in Victoria, to increase market competition and to give consumers a choice of providers. This gave private companies the opportunity to enter the energy market and offer retail electricity and gas to consumers. Due to the success Victoria experienced through deregulation, Queensland, New South Wales and South Australia also chose to deregulate. Due to this process, there is a large diversity in regards to energy prices across Australia. In some states, such as Victoria and New South Wales, there are a large number of retailers, providing a healthy quantity of retailer competition. In other states (such as Western Australia) deregulation has not occurred. The Solar Market Throughout the last decade, state governments have encouraged the adoption of solar energy by creating solar bonus schemes and setting minimum solar feed-in tariffs (FIT) to customers. The size of the tariff varies in each state, and the government would give more to customers that installed solar systems earlier. Each of the state government solar feed-in tariffs have an expiry date, for example the 60c Solar Bonus scheme in NSW will expire 31st December 2016. *The information in the tables below was accurate as of September 2016. VICTORIA OPEN New Standard Feed-in Tariff • Only scheme still open to new solar installations/applications Scheme • Retailers pay 8c as mandated by the government • System must be 100kW or smaller CLOSED Old Standard Feed-in Tariff • Customers get paid the same rate to export electricity as they Scheme pay to import electricity • This scheme is no longer running Premium Feed-in Tariff • Opened in late 2009 and was closed to new applicants by the end of 2011 • Distributors pay 60c provided the system is 5kW or smaller • Offer will expire by the end of 2024 • Can switch to Click Energy and keep offer provided the NMI is unchanged • Credit balances refunded over 12 months or $100 min collection Transitional Feed-in Tariff • Replaced premium FiT in 2011, closed to new applicants by the end of 2012 • Distributors pay 25c provided the system is 5kW or smaller • Offer will expire by end of 2016 • Can switch to Click Energy and keep offer provided the NMI is unchanged © 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 4 is strictly prohibited. NEW SOUTH WALES: OPEN Retailer-funding only • Open to all new applicants and will replace all current Scheme schemes by 31 October 2016 • Retailers are recommended to give 7.7c CLOSED 60c Solar Bonus Scheme • Opened in January 2010 and was closed to new applicants at Scheme (60c- 6.6c + 10c = 63.4c Total FiT) midnight on 28 April 2011 • The eligible system must have been purchased or leased on or before 27 October 2010 and an application was made to connect to the grid before 18 November 2010 • Customers must have a gross metering system that does not exceed 10kWh of generation capacity • Distributors pay 60c, for which retailers are required to pay 6.6c of this. Click Energy offers an additional 3.4c on top of the 6.6c making the total FiT 63.4c • Offer will expire by 31 December 2016 • Systems connected from 1 July 2012 are not eligible to receive the scheme tariff payments • Can switch to Click Energy and keep offer provided the NMI is unchanged 20c Solar Bonus Scheme • Opened in late 2009 and was closed to new applicants by the (20c- 6.6c + 10c = 23.4c Total FiT) end of 2011 • Distributors pay 60c provided the system is 5kW or smaller • Offer will expire by the end of 2024 • Can switch to Click Energy and keep offer provided the NMI is unchanged • Credit balances refunded over 12 months or $100 min collection QUEENSLAND: OPEN Retailer-funding only See product table for the current offers available Scheme CLOSED 44c Solar Bonus Scheme • Customers who applied for the Queensland Solar Bonus Scheme Scheme before 10 July 2012 and maintain their eligibility can continue to receive a feed-in tariff of 44c • This feed-in tariff is closed to new solar customers. The Solar Bonus Scheme is legislated to expire on 1 July 2028 You will lose eligibility for the 44c feed-in tariff rate if you • Move house (as this will result in a new electricity account holder for the premises) • Sell or let your house (if this results in a new electricity account holder for the premises) • Increase your inverter capacity (size) • Close your electricity account • Are disconnected (for example, because you fail to pay a bill or for breach of contract) 8c Solar Bonus Scheme The 8c feed-in tariff concluded on 1 July 2014. From this date, electricity retailers set and pay their own feed-in tariffs © 2016 Viridian. All rights reserved. Unauthorized copying or reproduction of this product, in whole or in part, VIRIDIAN • AUSTRALIA MARKET GUIDE 5 is strictly prohibited. SOUTH AUSTRALIA: OPEN Group 5 • Approved permission to connect received after 30 September Scheme 2013 • No feed-in tariff offered but you may be eligible to receive a minimum retailer payment from your electricity retailer CLOSED Group 1 • Approved permission to connect received by 31 August 2010. Scheme • System fully installed and connected by 29 January 2012. • 44c until 30 June 2028 Group 2 • Approved permission to connect received between 1 September 2010 and 30 September 2011. • Solar system fully installed by 30 September 2011. • 44c until 30 June 2028 • Feed-in tariff payment is limited to the first 45kWh exported to the grid each day Group 3 • Approved permission to connect received between 1 September 2010 and 30 September 2011 • Booking made with SA Power Networks for the installation of an Import/export meter within 120 days of 1 October 2011. • Solar PV system fully installed and connected at any time between receiving approval to connect and the meter booking cut off date • 44c until 30 June 2028 • Feed-in tariff payment is limited to the first 45kWh exported to the grid each day. Group 4 • Approved permission to connect received between 1 October 2011 and 30 September 2013. • Fully install and connect your solar PV system at any time between receiving approval to connect and the meter booking cut off date • 16c until 30 September 2016 • Feed-in tariff payment is limited to the first 45kWh exported to the grid each day. Retailer Funded Feed-In Tariff The retailer funded feed-in tariff is added on top of the government feed-in tariff, or in the case where there is no solar bonus scheme from the government, the retailer will be providing the entire amount. Click Energy has placed a strong emphasis on the competitiveness of its Solar Packages, particularly in regards to the competitive feed-in tariff that it offers.
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