The Australian Capital Territory currently has the most generous solar feed in tariff policy in the country; one that has recently come under fire.
In July 2008, legislation was passed or a gross feed in tariff to be implemented, which pays on a multiplier system of current electricity rates, around 50.05c/kWh at present, for all electricity generated by owners of grid connected home solar power systems. Along with other government renewable energy rebates, this means that system owners in Canberra can greatly reduce the payback time on their investment.
While gross feed in tariffs for solar power have been key to the success of low emissions electricity generation in countries such as Germany and are considered economic stimulus without the public debt, most other states in Australia with a feed in tariff operate on a net system where only surplus electricity attracts the premium rate.
Environment Minister Simon Corbell says the cost of the subsidy is about 50 cents per household a week.
However, according to a report on the ABC, the Independent pricing regulator has warned that residents could be locked into higher power bills for the next 20 years as a result of the tariff. ACT Opposition leader Zed Seselja says the Government rushed into the scheme without adequate consideration of its impact.
Minister Corbell says he makes no apology for having an aggressive policy designed to encourage the uptake of renewable energy, a position backed by Australian National University Sustainable Energy Systems Centre director Andrew Blakers.
Regardless of how low emissions electricity is sourced going forward, consumers will need to come to terms with the fact it will be more expensive. Some view “clean coal” as a viable option, but even if the controversial technologies do prove viable, “the expectation is that the cost increase for clean coal technology will be in the order of 50 to 75% of current power generation costs”, according to a transcript of an interview with Dr.Chris Spero sourced from the Australian Coal Association’s NewGenCoal web site.
