Victorian solar feed-in tariff improved, but still low power
Photo: Glen Morris - SolarQuip
Wednesday 01 July 2009
Australia’s leading sustainable living organisation congratulates the Victorian Opposition, Greens and electricity retailers for their efforts to correct what was one the of the nation’s most regressive feed-in tariffs for solar power.
The Alternative Technology Association welcomes the last minute amendments to the Victorian feed-in tariff laws that will see homes, community groups and small businesses paid for the clean electricity they contribute to Victoria’s power supply.
“We congratulate the Opposition and the Greens for ensuring that community organisations and small businesses across Victoria will be paid for the clean power they produce,” says Damien Moyse, Energy Policy Manager for the ATA.
“Victoria’s feed-in tariff remains a missed opportunity to drive significant uptake of roof-top solar and boost local jobs, but the amendments have gone some way to improving what was a very poor piece of legislation.”
The amendments include: an increase in the size of solar systems eligible to receive the payment, from 3.2 kW to 5.0 kW; the inclusion of community buildings and small businesses, that use less than 100 MWh per year, into the scheme.
Mr Moyse says despite the amendments, under a net scheme the state will still only experience a limited increase in the uptake of solar power.
“The majority of solar-homes will still take between 15 and 20 years to pay off their solar installations, particularly when investors in roof-top solar will be relying on market sensitive Renewable Energy Certificates, supplied to them under the federal government’s Solar Credit Scheme, to provide the initial financial subsidy.”
Under the Solar Credit Scheme, which replaces the Solar Rebate, households installing solar systems will receive multiple RECs which can be sold to offset the upfront cost of installation. The price of RECs can vary significantly with changes in their market value.
Mr Moyse says that electricity retailers are also to be applauded for their willingness to pay solar-homes for their clean electricity.
“We congratulate AGL and Origin who have confirmed publicly that they will pay customers for the energy they export, rather than extinguishing their credit at the end of twelve months.”
Mr Moyse says ATA will be keeping a close eye on the level of success of Victoria’s feed-in tariff, along with feed-in tariffs across the country.
Media enquiries: Bojun Chiswell - T. (03) 9631 5409 E. bojun@ata.org.au
