A survey conducted by Solar Citizens has found 76 per cent of solar owners on premium feed-in tariffs (PFiTs) support voluntary buy-outs to install battery systems.
In the wake of findings that Australia is experiencing a solar boom, the Sydney based consumer advocacy group’s report says that households currently on the legacy premium feed-in tariffs are reluctant to upgrade their solar energy systems and install batteries for fear of losing their tariff.
Rules in most states prevent solar owners receiving PFiTs from installing more solar panels, or investing in batteries.
Premium feed-in tariffs rules hampering solar upgrades
These rules have allowed the scheme to grow and prevented cost blowouts. But as the price of solar PV fell, system sizes increased, and battery systems like Tesla’s Powerwall made huge inroads in the market.
As a result, many early adopters of solar who wish to expand their systems now face a difficult choice: receiving a guaranteed financial benefit from the PFiT, or forfeiting it to install more solar and storage.
PFiTs, plus plunging price of solar = industry boom
Australia’s solar boom didn’t happen on its own. Over the past ten years, federal and state ‘Solar Bonus Schemes’, along with PFiTs, paid households between 20 – 60 c/kWh for solar fed back to the grid.
In addition, plummeting prices on solar panels kicked off an industry bonanza. Back in 2007, there were 3,480 solar households in Australia. In 2018, there are 1.8 million and counting.
But now many of those households are locked in to PFiTs, unable to take advantage of the low prices of battery technology.
Without batteries, PFiTs are ‘golden handcuffs’
The solution, according to the report, is for governments to offer voluntary buyouts of the PFiT and share the savings. The solar owners who participate then get an upfront payout of the majority of their PFiT to invest in battery storage.
Survey respondents Gordon and Mary from Brisbane installed a 1.2 kW system in 2009. They also like the buy-out idea.
“The premium feed-in tariff I’m on is very generous,” says Gordon. “But with the reduction in the price of new panels and batteries it’s like having golden handcuffs.”
The buy-out would also create a $400 million solar fund for renters and low-income households.
Solar Citizens emphasise the buyout would be completely voluntary, and PFiTs must be replaced with a fair price for solar.
