Families paying $68 extra to fund renewable subsidies scheme
Australian families are being hit with extra costs on their electricity bills to fund renewable energy subsidies with energy experts claiming the federal government scheme is unfair.
NSW
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Aussie families are paying at least $68 extra on their annual electricity bills to fund rooftop solar and wind farm subsidies, an analysis of the cost of the federal government’s renewable energy targets reveals.
And that is on top of other yearly green levies imposed by the NSW government, which include an average $22 for the NSW Climate Fund levy as well as nearly $10 for the NSW Energy Savings Fund — all pre-GST.
Energy experts say the scheme is unfair, as all consumers pay, especially renters who are unable to use solar panels, residents in unviable locations and large families who incur higher levies because they use more electricity.
Despite calls by the Australian Competition and Consumer Commission (ACCC) for the government to wind back rooftop solar subsidies, which are set to continue until 2030, Energy Minister Angus Taylor has not moved on the issue.
That comes despite a promise in his first major speech as minister a year ago that his “first and only priority” was to cut power prices. In its August report released today, the ACCC renewed calls for green initiatives funded through electricity bills to be scrapped.
“There are opportunities for all governments to provide additional savings to customers by removing subsidies or costs of environmental green schemes,” the report said.
“For example, the subsidy for the installation of small-scale renewable energy systems is no longer required given the dramatic fall in the cost of solar installations.”
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The ACCC report argued abolishing the scheme would have a “tangible impact” on reducing customer bills, saving the average residence $36 in 2020-21.
Last year the small-scale renewable energy target cost customers about $29.10.
The other levy — to provide discounts for wind farms and large solar farms — added another $39.40 to average bills.
Questioned about whether he would axe the subsidies, Mr Taylor said he expected the “impact” of the large solar and wind farm subsidy “will be gone in the next three years” and the smaller-scale solar subsidy “will phase out between now and 2030”.
Institute of Public Affairs research fellow Kurt Wallace called on the government to abolish all subsidies for wind and solar because “they are driving up electricity bills and undermining the reliability of the grid”.
“There is no need for the subsidy, especially given the cost of solar panel installations has dropped dramatically since the subsidy started in 2011,” he said.
After copping a $2000 power bill this winter, Castlereagh couple Glenn and Leigh Parkes will be getting solar panels installed on their property in the coming weeks.
“Power bills just keep going up,” Mr Parkes, 42, said.
“You can say it’s to be green and self-sufficient, but at the end of the day we’re doing it to save money that we need to spend on the family.”