Western Australia Solar Feed In Tariff Confusion

Many solar power enthusiasts in Western Australia have expressed confusion and disappointment in sudden changes to the state's new feed in tariff system; which was due to be rolled out very soon.

Many solar power enthusiasts in Western Australia have expressed confusion and disappointment in sudden changes to the state’s new feed in tariff system; which was due to be rolled out very soon.

Last month, Dr Ray Wills, Chief Executive of WA Sustainable Energy Association Inc (WA SEA),  said that Western Australia would have a a gross feed in tariff of 60 cents per kilowatt hour. A gross feed in tariff pays on all electricity generated by a grid connected solar power system. The scheme would have been one of the most generous in Australia and was widely applauded.

However, in an announcement last week by Western Australia’s Minister for Energy and Training, Peter Collier, the feed in tariff scheme will be delayed and when implemented, will be based on a net model that only pays for electricity generated surplus to the use of the building on which the system is installed. A net feed in tariff is considered to be a poor cousin to the gross model, limiting financial appeal to prospective system owners and therefore decreasing uptake.

The rate of payment under the severely cut back feed in tariff program and the program’s commencement is at this point unknown.

The Minister said the scheme could not be introduced in its original form due to the massive uptake of solar systems and the current economic crisis. Mr. Collier said the $13.5 million committed to the scheme has already been allocated in full and the Government’s election commitment was based on the previous Labor government’s election policy of the same budget amount, together with consultation with the Western Australian Sustainable Energy Association.

Due to the delay, additional rebates will be available for some systems installed between September 6, 2008 and June 2, 2009 in Western Australia to help home owners recoup some of the costs. According to the latest press release from the Minister’s office on the issue, “the payment amount will vary for each household, taking into account the size of the system installed and each recipient’s eligibility for other Government rebates.”.

The continued disparity between the states on feed in tariffs combined with Western Australia’s latest move has also strengthened calls for a national, uniform gross feed in tariff scheme.

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