SOLAR FOOTBALL
Once again the solar energy industry has been kicked about the head like a political football. NSW Premier Barry O’Farrell’s retrospective unilateral reduction of the gross feed in tariff for rooftop PV systems from 60c/kWh down to 40c continues the pattern that both state and federal governments of both persuasions have adhered to in recent years: hitch your star to renewable energy when you want greenie points, but back off at a moment’s notice if things look cloudy. The changes to rebates at both levels, changes to the RECs pricing structure – the list goes on. This backflipping – apart from being dubious legally and reprehensible morally – removes all certainty from a young industry, with many small businesses trying to make a go of it.
Importantly, government support for renewables (whether by subsidy, rebates, or free-market RECs – or even a carbon tax) needs to be seen in the context of the existing subsidies that support the ‘profit-starved’ fossil fuel industry: $9-$10bn (C. Riedy, ISF, reporting year 2005-06). That’s typical of every year, in Australia. That’s a lot of subsidy from battlers like you and me. Call that a level playing field? Read about it here.
The original 60c/kWh handed out by the Kenneally Government (remember them?) was probably unsustainable, but the number of households legally contracted at that rate was relatively small. 45c/kWh may have been a better number, linked to electricity price rises. But then in her dying days (prior to her strings being cut altogether – thanks for that enduring image Alan Moir) she slashed it to 20c for all new customers. That’s less than the time of use buy-in rate! Utterly illogical stupidity.
This whole scene is a mess. I have just about lost hope in any of our politicians to get it right, and stable. I am lost for words at this point, and cannot write any more…
Dick Clarke,
Director, Envirotecture
PS ….until now, a couple of days later:
It is unnecessary for the Govt to slash the GFIT at all. The output of PV panels is rated according to a theoretical standard – only achievable in practical terms in an Antarctic summer day. In short, it means the ‘rated output’ of panels is overstated in Australian conditions by at least 20%, maybe 25%.
This means the bean counters in Macquarie Street have basically got it wrong by over $200m.
Think again Barry – don’t make a mess of it!
Tags: carbon tax, Chris Riedy, fossil fuel subsidy, GFIT, gross feed-in tariff, ISF, NSW Government, O'Farrell Government, PV, RECs, renewable energy