Solar power system owners in regional Queensland will start receiving a more generous rate for their solar electricity exports from July.
The Queensland Competition Authority announced on Friday the new feed-in tariff for regional customers in 2016-17 is 7.448 cents per kilowatt hour; 17.3% higher than 2015-16.
Those receiving the 44 cents per kilowatt hour rate under the Solar Bonus Scheme will not be affected and that level will continue until 2028.
The improved rate for regional Queensland is a result of an increase in wholesale energy costs, driven by a jump in demand from Queensland-based liquefied natural gas (LNG) plants and higher gas costs.
The methodology used to calculate the price was the same as that used in the previous two years.
The 7.448 cents per kilowatt hour is a minimum – by shopping around, solar households may be able to secure a better deal from electricity retailers.
The QCA and the Palaszczuk Government consider 7.448 cents a fair return for the energy exported to the grid. It’s certainly better than a poke in the eye with a sharp stick, but by installing battery systems, solar households and businesses in regional Queensland can make the most from their high value solar electricity.
However, there could be further increases in solar feed in tariff rates in the future.
The Palaszczuk Government has set a target of 1 million solar roof tops in Queensland by 2020 and as part of realising that goal, the Government has tasked the Queensland Productivity Commission with investigating a fair price for solar.
Acting Minister for Energy Leeanne Enoch says the final report will be delivered in the coming months.
Ms. Enoch says uncertainty over the federal government’s Renewable Energy Target damaged the short-term popularity of solar energy in the state.
“But solar power has proven to be resilient, and we will work to make sure its full potential is realised,” she said.
According to the latest information from Australia’s Clean Energy Regulator; there are approximately 473,257 solar panel systems installed in Queensland – so the government will have it work cut out in order to reach the 1 million system goal in less than 4 years.
Some might argue a solar feed in tariff that reflects the real value of electricity exports would be a good start; as would battery system rebates and subsidies.
