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Overwhelming Industry Support for Gross Feed In Tariff


by Energy Matters

The Clean Energy Council, of which Energy Matters is an active member, appeared before the Australian Senate Environment Committee on Tuesday to lobby for the  implementation of a national gross feed-in tariff (FIT) for grid connect solar power systems; presenting evidence to back a program which rewards households and businesses with a premium rate for electricity they generate from renewable sources.

The inquiry hearing occurred over two days with an overwhelming majority of representatives confirming their preference for a gross national feed-in tariff.

From the 127 submissions made to the Senate Inquiry:

- 80% supported a gross feed in tariff
-11% did not indicate a preference;
- 8% were opposed to an FIT policy;
- 1% favoured a net FIT

The difference between a gross feed in tariff and net FIT is distinct. Under the gross model, one that has proved extraordinarily successful in other countries such as Germany, all electricity generated attracts the premium rate. Under a net program, only the surplus electricity, i.e. that which is not used by the household, attracts the premium rate. This would disadvantage households where members are at home during the day and consuming electricity.

At least 19 European Union countries have already implemented a gross feed-in tariff to encourage further uptake of grid connect solar power systems and to stimulate massive investments into the solar PV industry.

Energy Matters, along with The Clean Energy Council and its other members will continue to lobby on this issue - renewable energy not only plays a vital role in Australia’s future energy needs but also in meeting our obligations as a responsible global citizen in reducing greenhouse gas emissions.



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