The Victorian government has announced that it is cutting the State’s solar feed-in tariff from 25 cents per kilowatt-hour to 8 cents per kilowatt-hour from the beginning of 2013.

At the same time, the Government will broaden the feed-in tariff to include all low-emissions and renewable technologies of less than 100 kilowatts – including low emissions generators such as fuel cells.

Environment Victoria said that the State’s households and small businesses would be worse off under the move, which will pay only about a third of the retail cost of electricity in Victoria.

However, Ceramic Fuel Cells, manufacturer of BlueGen gas to electricity generators, welcomed the broadening of the tariff to include other technologies such as fuel cells, which are already eligible to receive feed-in tariffs in several other countries, including Germany and the UK.