Developer deal: Allan exempts wind and solar from levy hike

“The fact that renewable energy companies will have their levy capped stinks,” says Normanville farmer Bec Marshall.

The Allan Government has hit farmers with emergency services levy rates 14 times higher than those paid by corporate wind and solar developers.

The Allan Government has quarantined corporate-owned wind and solar developers from a $616m hike in emergency services levies, while doubling and tripling what it charges households, businesses and farmers.

From July 1 the rebadged Emergency Services Volunteer Fund levy on households will double, from 8.7 cents per $1000 of a property’s capital improved value this financial year to 17.3c/$1000CIV in 2025-26, plus a $136 fixed charge.

For businesses the ESVF rate per $1000 of CIV rises from 66.4c to 133c in the new financial year, while for farmers the levy triples - from 28.7c to 83c, plus a $276 charge.

Meanwhile Treasurer Jaclyn Symes has protected corporate wind and solar developments, setting their levy contribution at the public benefit rate of 5.7c/$1000CIV, the same as this financial year.

It means Victoria’s wind and solar developers will pay little more than $600,000 in emergency services levies in 2025-26, while receiving more than $600m in large-scale generation certificate (LGC) subsidies, plus about twice that again in revenue from the sale of electricity.

In contrast Victorian farmers will contribute $204m in ESVF levies, other businesses $410m, industry $230m and households $797m.

The government has previously argued that applying the lower rate of FSPL to renewable projects was all about “attracting investment in renewable energy to keep the lights on and power prices low as our ageing coal-fired generators close”.

But Gre Gre CFA volunteer brigade captain and farmer Peter Knights said he was “horrified by the injustice” of the system.

“They’re imposing all these developments across our agricultural landscape, and contributing nothing,” Mr Knights said.

Normanville grain grower Bec Marshall said the levy increases imposed on farmers were “unjust and will further increase our costs, in what is an already expensive environment for farm businesses”.

“The fact that renewable energy companies will have their levy capped stinks of more subsidisation for the energy industry,” she said.

Liberal Member for Polwarth Richard Riordan said it was “immoral” that the government offered wind farm developers massive discounts, “when they are a proven fire risk”.

Energy Safe Victoria has conducted a survey to ascertain how many wind turbines had in-built fire suppression systems, but Mr Riordan said the government had blocked its release.

All up, the rebadged FSPL as the Emergency Services and Volunteers Fund will increase the amount collected from $1.033bn this financial year to $1.649bn in 2025-26.

Note: Fuel-generated power plants – coal and gas – will pay the industrial levy rate of 133c/$1000CIV in 2025-26.