Norbert asked:
“If a gross tariff was to be introduced in WA then is it true that this would increase everyone’s power bill by approx.$100 a year. Whereas the proposed net tariff would result in an increase of only $ 10 per year or a tenth. If this is the case wouldn’t this suggest that the government expects only 10% of the generated electricity is actually fed back into the grid receiving the 60 cents premium and wouldn’t this contradict the 10 year pay back period?”
Dr. Solar’s response:
Thanks for your question Norbert.
The proposed gross feed in tariff in Western Australia will under no circumstances increase any power bill by $100 or not even $10…. in Germany after 7 years of a true gross feed in tariff, the increase of electricity prices attributed to the feed in tariff was approx 1.5% over the total 7 year period. …
This means if the German model is applied; allowing for an average household electricity bill in Western Australia at $800 per annum, the increase for each consumer will be $12 over 7 years. That’s much less than increases for inflation, the future carbon trading scheme, infrastructure replacement programs etc…
This is because the number of solar and wind systems commissioned is still so relatively small compared to the overall picture, that the cost increase will be negligible. For example, right now the Australian Government solar rebate program installations cover not even 1/4 of one percent of all the homes of Australia each year ..meaning on current rate of solar installations we will take 400 years to cover all the homes of Australia with solar. Also with solar and wind there will be savings in regards to peak load demand management, as solar power will produce the most during the hours where appliances such as air conditioners operate and create the peak load problem.
In regards to the second part of your question – yes, the Government when they propose a net feed in tariff expects to pay much less for clean energy and in the example you mention it seems that they only expect 10% to go back to the grid. Based on my own system at home it appears that I export approx 1/3 of the overall generation and I think that’s a more realistic figure. Whichever way feed in tariffs are examined, the gross feed in tariff is the one which makes solar power affordable for working families and the net feed in tariff is used when politicians want to look like the doing something – when in reality doing very little.
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