The Newman Government could experience a massive backlash after announcing the government mandated 8c per kilowatt hour solar feed in tariff component will be no more from July 1 for tens of thousands of Queensland solar households.
Ergon Energy customers will continue to receive a tariff paid by Ergon Retail; however Energex customers won’t and will need to negotiate a tariff with their electricity retailer. However, whether there will be any motivation for retailers to offer more than they currently are (6c – 8c in most cases) in addition to the current mandated amount remains to be seen as rates will not be regulated.
Solar households on the State’s previous 44c feed in tariff scheme will not be affected by the change.
While installing solar power systems will still be a solid investment post-June; the loss of the 8c component and leaving Queensland solar owners at the mercy of negotiating with electricity retailers has come as a shock and is not sitting well with many.
The Clean Energy Council has called on the government to set a fair rate that electricity retailers are required to pay.
“It is naive to think that individual customers will be able to directly negotiate a fair price for their solar electricity in a small and uncompetitive market,” said CEC Policy Director Russell March.
Solar Citizens had harsher words for Premier Newman.
“Queensland is at risk of losing its reputation as the Sunshine State. Newman is bowing to big energy companies and ignoring the voices of the Queensland people,” said Lindsay Soutar; National Director of Solar Citizens.
“Not only is this short sighted for Queensland’s energy future, it’s short-sighted for Newman’s political future, as well.”
Solar Citizens has launched an online petition demanding the Newman Government reverse the decision. The group is encouraging all current and future solar owners throughout Australia to sign it and take a stand for solar in Queensland.
After hearing news of the announcement, Electrical Trades Union state organiser Stuart Traill reportedly stated the LNP has “a pathological hatred of renewable energy“.
The Newman Government certainly appears to be no fan of Australia’s Renewable Energy Target either; even though the RET provides many benefits to the wider community. Energy and Water Supply Minister Mark McArdle enthusiastically embraced news last month that the Renewable Energy Target review had commenced – a review that some feel has been rigged from the get-go to twist a knife that has already been sunk into the sector’s back.
Minister McArdle referred to the RET as a “handbrake” on Queensland’s economic growth; yet it has been demonstrated time and again to deliver high value at low cost. In fact, a recent analysis showed the Small-scale Renewable Energy Scheme (SRES) component of the Renewable Energy Target will have zero net cost impact on household power bills.
Last year, Premier Campbell Newman was pushing a proposal to charge all solar homes an extra $200 a year; even after promises in 2012 that there would be no fixed charge of any sort on people using solar. That plan was scuttled.
With so many solar supporters in Queensland, the Newman Government’s attitude towards renewables may come back to haunt it at the next year’s State election.
