Home: Renewable Energy News: Thursday 02 July, 2009

Renewable Energy News

THURSDAY 02 JULY, 2009 |

ACT Solar Feed In Tariff Under Attack

ACT gross solar feed in tariff
The Australian Capital Territory currently has the most generous solar feed in tariff policy in the country; one that has recently come under fire.

In July 2008, legislation was passed or a gross feed in tariff to be implemented, which pays on a multiplier system of current electricity rates, around 50.05c/kWh at present, for all electricity generated by owners of grid connected home solar power systems. Along with other government renewable energy rebates, this means that system owners in Canberra can greatly reduce the payback time on their investment.

While gross feed in tariffs for solar power have been key to the success of low emissions electricity generation in countries such as Germany and are considered economic stimulus without the public debt, most other states in Australia with a feed in tariff operate on a net system where only surplus electricity attracts the premium rate.

Environment Minister Simon Corbell says the cost of the subsidy is about 50 cents per household a week.

However, according to a report on the ABC, the Independent pricing regulator has warned that residents could be locked into higher power bills for the next 20 years as a result of the tariff. ACT Opposition leader Zed Seselja says the Government rushed into the scheme without adequate consideration of its impact.

Minister Corbell says he makes no apology for having an aggressive policy designed to encourage the uptake of renewable energy, a position backed by Australian National University Sustainable Energy Systems Centre director Andrew Blakers.

Regardless of how low emissions electricity is sourced going forward, consumers will need to come to terms with the fact it will be more expensive. Some view "clean coal" as a viable option, but even if the controversial technologies do prove viable, "the expectation is that the cost increase for clean coal technology will be in the order of 50 to 75% of current power generation costs", according to a transcript of an interview with Dr.Chris Spero sourced from the Australian Coal Association's NewGenCoal web site.

Hills Receive Additional Solar Hot Water RECs Recognition

Hills Esteem Evacuated Tube Solar Hot Water
In the solar hot water industry in Australia, there's been an ongoing argument for years about which solar hot water configuration is better - flat plate or evacuated tubes.

While it can be a case of horses for courses, generally speaking evacuated tube systems are a better option for the majority of Australian homes as they capture more sunlight due to having a greater surface area and are more efficient in transferring heat.

Regardless, flat plate supporters have pointed out that if evacuated tube systems were the more efficient option, then why do these systems attract fewer Renewable Energy Certificates, aka RECs, compared to flat plate systems of a similar price?

Renewable Energy Certificates are an electronic form of currency initiated by the Renewable Energy (Electricity) Act 2000. A REC is equivalent to one megawatt hour of electricity generation. RECs are issued when qualifying renewable energy products are purchased, such as solar power or solar hot water systems. Renewable energy certificates can be traded for cash, or are offered as a point of sale discount by some providers. The value of these certificates fluctuates according to market conditions.

The RECs argument has been rendered somewhat null and void with the announcement from Hills yesterday that the Office of Renewable Energy (ORER) have confirmed the Hills Esteem evacuated tube solar hot water product range now has an increased number of RECs allocated per system when purchased and installed within Australia.

Not only does this decision by the ORER provide official recognition of the efficiency of the Hills Esteem evacuated tube system, but the added Renewable Energy Certificates also translate to extra savings of up to a couple of hundred dollars on these systems. This is on top of the current REC levels and government rebates that in total can reduce the price of a Hills solar hot water system by thousands of dollars.