The Queensland Competition Authority (QCA) last week released its final report into solar feed-in tariffs – and the news isn’t great.
The QCA has recommended a distributor payment of zilch and an electricity retailer payment of 7.55 cents per kWh in South East Queensland.
This rate is well below the Clean Energy Council’s (CEC) estimate of at least 11.9c being a “fair and reasonable” payment, plus an additional distributor payment.
Furthermore, the QCA has recommended that payments should be completely voluntary in SE Queensland, left to the discretion of the electricity retailer.
“Individual households and small businesses are powerless compared with large electricity retailers. It is unrealistic to expect individual consumers to negotiate a fair deal with electricity companies,” says a statement from the CEC, which will be following up with Queensland’s government on the issue.
Adding to the CEC’s concern is a recommendation to move households with solar panels onto a different tariff that would involve a more “cost-reflective fixed charge”.
The CEC points out the Queensland Government has previously stated that “there will be no fixed charge of any sort on people using solar” and will urge the Government to stand by this commitment.
The Queensland Government will consider the QCA recommendations before it formally responds
The proposed changes would not be retrospective; meaning now is a very good time to go solar in Queensland.
According to national solar provider Energy Matters, under current incentives; a 1.75kW system the company has on special if installed in Brisbane can deliver financial benefits of $622 – $857 annually. A 3kW system can generate an estimated financial return of $1,066 – $1,470.
Households still debating whether to install solar power systems may want to act soon. Queensland may be set for another rush on installations due to other factors; including potentially tens of thousands of Queenslanders who signed up for the state’s previous solar feed in tariff rate needing to have their systems installed soon.
