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Renewable Energy News

WEDNESDAY 03 MARCH, 2010 |

ETU Report Backs National Solar Gross Feed In Tariff

by Energy Matters

A report by Access Economics Pty Limited for Electrical Trades Union, Victoria (ETU) has shown that a national gross feed in tariff for solar power in Australia would have far better outcomes for the same money that has been spent over the last 18 months by the Federal Government on the now defunct Solar Homes And Communities Plan.

The ETU says that under a gross feed tariff scheme as modelled in the report entitled, "The impacts of a gross feed-in tariff on electricity prices", nearly double the installations of solar power systems could have occurred.

According to ETU Branch Secretary Dean Mighell, "If a gross tariff scheme is introduced, householders will only pay a maximum of 2% more through their electricity bills."

Access Economics' report states the feed in tariff rate required for a 10-year payback of purchase and installation costs for a 1.5kW solar power system is 31c/kWh in the first year of operation, falling over 10 years to just under 20c/kWh.

Over the period 2010 to 2030, the total increase in electricity costs to consumers, in current dollar terms, would be $4,470 million. This equates to an average increase in cost per household of $2 - $6 in 2010, peaking at $11 - $33 per household in 2019 and declining thereafter. In percentage terms, the cost increase per household is 0.6% - 1.8% in 2010, falling to 0.5% - 1.6% by 2019.

Access Economics states other benefits that may arise from a national gross feed in tariff include additional employment within the solar industry, deferment of investment in new network infrastructure, the community being able to directly participate in greenhouse gas reduction, rapid uptake and the provision of support for other climate change policies to achieve their targets.

The ETU has written to Ministers Peter Garrett and Penny Wong in addition to Shadow Climate Action Minister Greg Hunt encouraging them to consider the benefits that a national gross feed-in tariff provides.

National provider of solar power solutions, Energy Matters, is currently running a petition at FeedInTariff.com.au that calls for a national gross feed tariff scheme be implemented. The petition is supported by the ETU and to date has attracted over 20,000 signatures.