After years of cuts, Victorians with solar panels will see an increase in what they are paid for the energy they feed into the power grid.
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State regulator the Essential Services Commission announced the minimum tariff for excess electricity generated by households would more than double from 5 to 11.3¢ per kilowatt hour.
The rise, which takes effect from July 1, was said to reflect both the rise in wholesale power prices and the environmental and social value of clean energy.
It follows a series of reductions in solar feed-in-tariffs across the country as installation rates dwarfed expectations and the price of panels fell markedly.
In Victoria, the tariff fell from 60¢ per kilowatt hour in 2009 to 25¢ cents in 2011. It was later cut to between 5¢ and 7¢, using a formula calculated annually.
While early movers remain on the premium 60¢ rate until 2024, the Andrews government said the new tariff would benefit everyone else with solar – about 130,000 households.
Energy Minister Lily D'Ambrosio said the new tariff would ensure solar households were compensated more fairly for power sold to the grid.
She said the Coalition had cut the rate to 5¢ per kilowatt hour and voted against legislative changes last year designed to better reflect the value of energy fed into the grid.
"We promised a fairer system and that's exactly what we have delivered," Ms D'Ambrosio said.
Opposition energy spokesman David Southwick said the increase was a much greater rise than flagged by the government last year, and accused it of trying to woo Greens voters.
He estimated it would increase power bills for non-solar households by $15.75 a year, and cited Grattan Institute research that in 2015 found Australians without solar panels had effectively paid $14 billion to subsidise those with them.
"The future of solar is through battery storage and community distribution, not making non-solar customers pay higher energy bills," Mr Southwick said.
Greens leader Greg Barber said the increase was not enough given electricity retailers charged about 30¢ per kilowatt hour for power from the grid. "What's being offering is still a rip-off," he said.
Alternative Technology Association policy and research manager Damien Moyse said it was heartening to have a government that was serious about renewable energy.
"Solar households and businesses across Australia provide greater value into the national electricity market than the narrow methodology used to calculate feed-in tariffs up until now," he said.
Environment Victoria campaigns manager Nick Aberle said there had never been a better time to install solar panels.
