Home: Renewable Energy News: UPDATE - Queensland Solar Feed In Tariff To Be Slashed

Renewable Energy News

WEDNESDAY 27 JUNE, 2012 |

UPDATE - Queensland Solar Feed In Tariff To Be Slashed

by Energy Matters

Last updated 11.30 AM June 27

Monday's announcement concerning Queensland's Solar Bonus Scheme feed-in tariff being slashed from 44 cents to just 8 cents for new Scheme customers from 10 July 2012 has sparked a rush on systems.

Rumours have also begun circulating the deadline may be brought forward. However, we stress these are unsubstantiated rumours at this point, relayed via some callers to Energy Matters.

The official Queensland government position is those wishing to access the 44 cent rate will need to lodge a network connection application before midnight on 9 July 2012.

Either way, Queensland households considering switching to solar power and wanting the higher incentive should secure a system within the next few days. Households waiting until the last moment to put down a deposit on a solar power system may then miss the official deadline for lodging an application to the Scheme.

We encourage households in Brisbane and throughout Queensland wanting to go solar to call Energy Matters' 1300 727 151 hotline; or review our current Queensland solar power system specials and order or register interest online via our solar quotes system.

According to a fact sheet (PDF) issued by the Queensland Government, to be eligible for the Solar Bonus at the 44 cent rate, customers must:

- Have lodged a complete network connection application with an electricity distributor before midnight 9 July 2012;

- Have their approved energy system inverter installed by 30 June 2013;

- Purchase and install a new solar PV system or operate an existing system that is connected to the Queensland electricity grid with inverter capacity not exceeding 5 kilowatts;

- Consume less than 100 megawatt hours (MWh) of electricity a year (the average home uses approximately 7.2MWh a year);

- Hold an electricity account with an electricity retailer;

NOTE: Households already receiving the 44 cent solar feed in tariff will not be affected.

The news of the reduction came as a shock considering the scheme was thought to be safe from Queensland Premier Campbell Newman's renewable energy razor gang for the moment.

According to a communication from the General Manager of Energy Policy in Queensland's Department of Energy and Water Supply, the installed price of solar panels has halved since 2008 and the scheme has reached its objectives, reducing the need for support.

Installed solar PV capacity in Queensland jumped from just 3.2 megawatts in 2008 to more than 461 megawatts thanks to the Solar Bonus Scheme. With 180,000 installations, Queensland now has the most solar capacity in Australia says the state's Energy and Water Supply Minister Mark McArdle.

The 8 cents tariff program will be reviewed by 1 July 2013 and end for new connections under the revised scheme on 1 July 2014. The Queensland Government will instruct the Queensland Competition Authority (QCA) to make recommendations by early 2013 on a subsidy-free "fair and reasonable" solar feed-in tariff for Queensland for future connections - a prospect that will be met with suspicion by solar supporters given previous decisions elsewhere.

(EDITOR'S NOTE: We have now confirmed the 8c will be accompanied by an 6c - 8c per kilowatt hour retailer contribution, totalling 14c - 16c )

This is an evolving situation and this news item will be updated as more information becomes available.