Victorian Government solar power scheme needs extra grunt

Victoria’s proposed clean energy payment scheme, designed to encourage more people to install domestic solar power, has been condemned by some members of the renewable energy industry.

Energy Minister Peter Batchelor has announced Victoria will pay households with solar electricity systems installed on their roofs a premium of 60 cents per kilowatt hour of energy fed back into the grid.

While this is the most offered by any state in Australia – both Queensland and South Australia offer 45 cents per kilowatt hour – clean energy groups have accused the government of deliberately designing a payment scheme that will not lead to a rapid uptake of solar power for homes.

Clean energy payment schemes, known as feed-in tariffs, pay consumers who install home solar electricity systems above retail prices for excess solar energy produced.

Mr Batchelor said the new Victorian feed-in tariffs would enable people to pay off the cost of solar installation in less than ten years.

Spokesman for the Alternative Technology Association, Brad Shone said “less than 10 years” claim was "so far from the truth it was not funny". That would need a payment rate of at least $2, he said.

Jeremy Rich, Managing Director of Australian renewable energy company, Energy Matters, said the Victorian government should “consider a gross feed-in tariff as this was the model for other successful tariff schemes around the world.

“The proposed net metering will only offer payment for the spare solar electricity returned to the grid. This means that the feed-in tariff model, which is so successful in Europe and many other countries, will be watered down significantly,” he said.

Mr Rich added, “the government is giving hope to Victorians by making them think they are encouraging renewables and solar power, when in fact this proposed feed-in tariff scheme could turn out to be a missed opportunity. Why can’t they adopt a tried and tested gross model like the rest of the world?”

Environment Victoria campaigns director Mark Wakeham said the Government had "shunned the experience of 40 countries internationally".

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