The Senate Select Committee on Electricity Prices has acknowledged residential and commercial solar have had a positive impact on the cost of electricity.
For years the solar industry battled the myth that solar power was the major culprit contributing to rapidly increasing electricity bills.
For a while it seemed no matter what the industry said, the experts quoted or the studies referenced, some in the mainstream media happily perpetuated the myth and misinformation; stirring up anti-solar sentiment within the community and influencing government policy.
Thankfully, that dark chapter appears to be over. Increasingly, Australians are understanding solar is not the enemy and that network costs are the primary villain.
In the report released on Thursday, the committee echoed the ACCC’s view and confirmed what the solar industry and its supporters have been saying – that the most significant factor driving up electricity prices is “inefficient over-investment in network infrastructure—the poles and wires”.
As part of a wide-ranging investigation, the Select Committee on Electricity Prices was established to inquire into and report on identification of the key causes of electricity price increases. It was to also report on options to better protect consumers, reduce peak demand and improve the productivity of the national electricity system; plus examine opportunities and barriers to the wider deployment of distributed clean and renewable energy generation.
The committee believes the Standing Council on Energy and Resources (SCER) should look into barriers to the uptake of embedded generation, which includes solar power, and consider appropriate regulatory and operational reforms to encourage the connection of embedded generators to the electricity grid.
The committee recognised the savings that can be realised where electricity is generated closer to the point of consumption by reducing the need for expensive transmission infrastructure. It has recommended the Australian Energy Market Commission (AEMC) implement changes to the regulatory framework so that network charges for embedded generators reflect the cost of using only the relevant section of the network. Additionally, the committee recommends there should be incentives provided for generators to build in locations where the costs associated with transmission are reduced.
The 210 page Senate Select Committee on Electricity Prices report can be viewed here (PDF)
