The Western Australian Government intends to slash the solar feed-in tariff rate for households that installed systems between mid 2010 and mid 2011.
Those who invested in solar power systems during that period will have their incentive reduced from 40c to 20c per kilowatt hour over the next year.
The situation is reminiscent of a similar stunt pulled by New South Wales’ O’Farrell government in 2011 – a decision that was ultimately reversed after outrage from the community.
While the announcement doesn’t affect households who installed solar after 1 August 2011 as incentives were reduced after that time; it’s estimated 75,000 households are impacted. These households factored in the incentive in their purchase decisions.
“Households were promised in writing that they would receive a set price for the electricity they exported for ten years…. It’s a huge betrayal of public trust, and they have every right to be angry,” said Sustainable Energy Association Chief Executive Kirsten Rose.
A petition was implemented soon after the announcement by grassroots group Solar Citizens. Launched last night, the petition had already gathered over half its target number of signatures by early this morning.
“This is an arbitrary and deeply unfair decision, targeting ordinary families – a blatant grab for cash by the WA government,” said Solar Citizens’ Dr Geoff Evans.
Clean Energy Council Policy Manager Darren Gladman said a decision to cut the rate was “effectively moving the goalposts after the ball had been kicked.”
The Australian Solar Council also strongly condemned the move.
“Today’s decision by the Barnett Government represents a significant sovereign risk if it is allowed to proceed. If this government contract can be ripped up without compensation, no WA Government contract is worth the paper it is written on. This move would set a very dangerous precedent,” said Australian Solar Council Chief Executive John Grimes.
