Friday, July 13, 2012

Solar Shake-up Slashes Feed-in Tariff

The benefit earned by Queenslanders who install solar panels and then provide power back to the grid will be slashed from 44¢ per kilowatt hour, to 8¢.
Campbell Newman inspects solar panels in Mackay during
the state election campaign.

But the Newman government says anyone already in Queensland's Solar Bonus Scheme as of July 9 will continue to receive the 44¢ per kilowatt hour feed-in tariff.

Energy Minister Mark McArdle this afternoon announced changes to the four-year-old Solar Bonus Scheme, saying the changes were needed to ensure every household did not pay too much to help pay for some homes to have cheaper solar power.

He said modelling of the current solar bonus scheme showed it would cost every household $54 a year by 2014/15, costing Queensland about $1.8 billion by 2028 if the bonus scheme remained unchanged at 44¢ per kilowatt hour.
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The changes will kick in from July 10 and a review of the scheme will also be launched.

The Liberal National Party's costings document, released before the March election, said the LNP was "committed to retaining the solar feed-in tariff" but the financial blueprint was silent on what rate it would be set at.

According to the government's media release, a replacement feed-in tariff of 8¢ per kilowatt hour will apply from July 10, 2012, and end on July 1, 2014, “pending a further review of the scheme”.

It says existing Solar Bonus Scheme participants will continue to receive the current 44¢ per kilowatt hour feed-in tariff as long as they continue to meet eligibility criteria.

The Queensland Competition Authority will be asked to make recommendations by early 2013 on a “subsidy-free 'fair and reasonable' solar feed-in tariff for Queensland”.

Mr McArdle said the government's approach would provide certainty for the Queensland solar photovoltaic (PV) industry and minimise any short-term impacts on investment and jobs.

“While consumers will still have to weigh up the costs and benefits, the government believes the replacement tariff will still make solar PV systems a viable proposition for many households,” he said.

Opposition environment spokeswoman Jackie Trad said the LNP had “committed to retaining the solar feed-in tariff”.

“What the [LNP costings] document didn’t say is they planned to strip the scheme down to only 20 per cent of the previous government’s scheme,” she said in a statement.

“While there have been arguments about whether existing tariffs are sustainable, voters would have naturally taken the LNP’s commitment at face value.”

Ms Trad criticised the government for announcing the decision late in the day with a statement issued at 4.15pm.

The Queensland Greens accused the government of engaging in “on-the-run decision making” that would create “uncertainty and service delivery problems for small businesses installing solar panels”.

“The announcement that the government will review the program after the changes have been introduced indicates that they are developing policy on the run,” Greens spokeswoman Libby Connors said.

Mr McArdle said the Bligh government scheme, introduced in 2008, had met its objectives of stimulating the local solar PV industry and helped make solar energy more affordable for many Queenslanders.

“Installed solar PV capacity under the scheme has increased from just 3.2 megawatts in 2008 to more than 461 megawatts today,” he said.

“The number of scheme participants has also increased from 1200 to more than 180,000 today, meaning Queensland has the largest solar PV capacity in Australia.”

Mr McArdle said customers who lodged an Inverter Energy System connection application with an electricity network distributor before midnight on July 9 would be assessed against eligibility criteria for the existing scheme and, if deemed eligible, would receive the 44¢ per kilowatt hour feed-in tariff rate.

Those who lodged such an application after this time would be assessed against eligibility criteria for the replacement feed-in tariff and, if deemed eligible, would receive the 8¢ per kilowatt hour rate, he said.

Mr McArdle said under changes to legislation planned for later in the year, eligibility for the 44¢ rate would cease if the existing participant ceased to be the electricity account holder for the eligible premises (for example, sold or rented out the property), or failed to install the system by June 30, 2013.

Source: http://www.brisbanetimes.com.au/queensland/solar-shakeup-slashes-feedin-tariff-20120625-20y6c.html

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