The Independent Pricing and Regulatory Tribunal’s (IPART) draft recommendation to double the voluntary solar feed-in tariff for New South Wales solar homes has been welcomed by industry groups.
In its latest draft review for 2017-18, IPART raised the benchmark range for solar feed-in tariffs (FiTs) from 5.5 to 7.2 cents per kilowatt hour (c/kWh) to 11.6 to 14.6 cents per kilowatt hour.
The benchmark range is a guide to the value of electricity exported to the grid from small-scale solar photovoltaic (PV) units, such as home rooftop solar power systems.
The pricing regulator said its recommendation was prompted by higher than expected wholesale electricity prices in the NSW power market.
Solar households urged to compare retailers
Under IPART’s terms of reference, increases in FITs must not impact retail electricity prices – it is up to energy retailers to pass on FiTs to solar customers, and consumers are advised to shop around for the best deal.
Not all electricity retailers treat solar customers equally, and IPART Chair Dr Peter Boxall is urging customers to factor in feed-in tariff rates when signing new contracts.
“Feed-in tariffs are only one component of a retailer’s market offer and the retailer with the highest feed-in tariff may not provide the best deal overall,” Dr Boxall said.
“We encourage customers to look for the best deal for their own situation, which includes usage rates, how much of their own energy they consume and other terms and conditions as well as the feed-in tariff.”
Recommended FiT (feed-in tariff) increase welcomed
Solar Citizens Australia has dubbed the move “sensible”, and is calling on retailers to implement the new premium tariff by July 1st.
“Solar Citizens recognises the efforts of the Minister here for this excellent progress towards a fairer price for NSW solar owners,” said Shani Tager, Senior Campaigner, Solar Citizens.
“The proposed ‘doubling of benchmark range’ could see 360,000 solar owners getting a better price for their solar, that’s a great outcome,” she said.
“These recommended increases to the tariff better reflect the increased wholesale price of electricity and demonstrates the widespread benefits to the network as a whole that solar provides.”
It’s also welcome news to the 146,000 solar households who were previously receiving 60 or 20 cents per kWh under the NSW Solar Bonus Scheme before the program was axed on January 1st this year. When the rate was cut to 4.7-8 c/kWh many households found themselves in the unenviable position of exporting huge amounts of energy to the grid, then paying a premium to buy it back.
