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VEECs lower the cost of large solar in Victoria
Discover how the VEEC incentive can help get your large behind-the-meter solar project implemented in Victoria.
If you've been considering solar for your site in Victoria and haven't hit the button yet, now is a great time to consider solar. A generous incentive, due to record high VEEC prices, can be used to reduce the payback of large solar below 4 years or highly cashflow positive as a Power Purchase Agreement (PPA).
This image below shows a 1.2 MW solar system installed in 2021 with VEECs reducing the implementation costs by 40%. It was contracted, through Beam Solar, as a 10-year PPA that is cashflow positive from the first day of generation.
Behind-the-meter solar projects in Victoria that are 100 kW or larger are eligible to create VEECs (Victorian Energy Efficiency Certificates).
Under the Project Based Assessment Measurement & Verification method, up to 10 years of VEECs can be deemed for the amount of grid energy reduced by the site due to the solar project.
Important points to note about VEECs for solar:
VEECs are only claimed on grid electricity reductions, not exported electricity. It's therefore important to correctly size the solar system to the site's load.
The process for claiming the VEECs is highly regulated, detailed and long:
- The project must be registered well before commencement, and
- VEECs are not received until 18+ months after project completion.
VEECs can only be created by an Accredited Person (AP) and we recommend that they are independent of the solar installer. We use a third party AP to maximize and de-risk VEEC value for your project within the Beam Solar procurement process.
Did you know LGCs cannot be claimed if VEECs are claimed, however:
- a VEEC is currently worth twice as much as an LGC
- 10 years of VEECs can be deemed versus under 9 years of LGCs out to 2030
- VEECs are received ~18 months after project completion instead of being spread over 9 years for LGCs
- under Climate Active, receiving VEECs does not impact renewable energy claims
Project contracts can be structured as an Outright Purchase (Capex) or Power Purchase Agreement (Opex) with pros and cons to both approaches:
Beam Solar can help get your solar project implemented with VEECs, from Assessment to Procurement and Operation. To get started, get in touch with one of Beam's Solar Experts or start a Beam Solar Assessment by clicking the button below: