Victoria’s government has announced the start of an inquiry it says will ensure the state’s solar households and businesses receive fair payment for the solar electricity they export to the grid.
Making good on an election commitment, the government’s True Value of Distributed Generation to Victorian Consumers inquiry will delve into the value the 245,000 solar power systems installed across the state provide to its electricity network.
Important aspects also to be considered during the inquiry are the environmental and social value of distributed generation – elements that have been ignored in the past by other reviews undertaken in Australia.
“Making sure Victorians are fairly compensated for the solar power they produce is a good way to promote the uptake of renewable energy,” said Minister for Energy and Resources Lily D’Ambrosio
“I strongly encourage all the relevant stakeholders; including the energy industry, environmental organisations and consumer advocacy groups, to participate in this important inquiry.”
Further details concerning the Inquiry, which will be carried out by the Essential Services Commission (ESC), will be published here. A draft report will be submitted to the Government by the end of November this year, with a final report to be submitted by the end of February next year.
A confusing aspect of the situation is the ESC recently announced the minimum feed in tariff in Victoria will be cut by 20% from January 1 2016. That cut may be short-lived if implemented and advocacy group Solar Citizens has previously called on Minister D’Ambrosio’s intervention to maintain the current feed in tariff level until the inquiry is completed.
According to Energy Matters, even at the current feed in tariff level, a 4.5kW solar power system installed in Melbourne can return a financial benefit of up to nearly $1,600 a year; making solar a solid investment.
The announcement of the inquiry going ahead follows other recent potentially good news for owners of solar panels in Victoria.
A bill amending Victoria’s Electricity Industry Act 2000 will prohibit retailers from excluding solar owners from electricity offers – they must be able to access the same deals as any other customer. Debate on the bill will occur tomorrow.
