Solar Feed In Tariff Reductions Loom

With the flurry of argy-bargy on the Australian solar scene recently; there's a danger some prospective solar buyers may be distracted and miss out on important solar feed in tariff deadlines.

With the flurry of argy-bargy concerning the Australian solar scene recently; there’s a danger some prospective buyers of solar power systems may be distracted by some of the sideshows and miss out on important solar feed in tariff deadlines.

In South Australia, the 16 cent FiT paid by SA Power Networks (in addition to electricity retailer contributions) will only be available for new connections until 30 September 2013. Households installing solar before that date will receive the 16c per kilowatt hour component for surplus electricity exported to the mains grid until 30 September 2016.

In Tasmania, at this stage it appears for those installing solar panels before January next year, the current 1 for 1 feed in tariff will stay in place until 2017.

In Victoria, the Essential Services Commission will be reviewing the state’s feed in tariff rates this year. At this point, details have not been released with regard to the process.

In Queensland, the QCA has recommended a voluntary electricity retailer payment of 7.55 cents/kWh for customers in the south-east of the state. Currently, the state scheme mandates 8 cents distributor payment, plus in some cases a 6-8 cents retailer contribution (voluntary) is paid. From July, Queenslanders are also facing an increase of 22.6% in their annual electricity bill on average.

In the Northern Territory, it appears the 1:1 feed in tariff is safe for now – and with electricity prices having increased 20% since the start of this year; solar is becoming a more attractive option.

In Western Australia, the feed in tariff situation also seems stable for the time being. With electricity bills for residential customers in Synergy’s network having risen by 12.6% since July last year; solar continues to be a popular strategy for households wanting to rein in their power bills.

In the ACT, the feed in tariff remains at 17 cents per kilowatt hour for exported surplus solar electricity. Electricity bills in the ACT have risen by 17.74% since July last year.

With still a great degree of uncertainty in some states and nasty surprises not uncommon; as has often been the case in recent years, the best time to install solar panels is usually right now to lock incentives in at higher rates to accelerate system payback time. Another dark cloud on the horizon with regard to solar pricing with the potential to affect payback time is the possible effects of continued weakness in the Australian dollar.

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