Tower puts roof solar in the shade

THE overly generous NSW solar tariff scheme was starting to stir a consumer stampede last witnessed in the Rudd government's ill-fated home insulation folly.

Like pink batts, it is fair to assume the prospect of free government money was a bigger driver for many buyers than good environmental intent.

The rooftop scheme has helped to focus attention on the fact solar panels work and that new technology and economies of scale are driving prices down.

But rooftop solar is still only an expensive and small - if highly visible - part of the answer to Australia's clean energy conundrum. It will never provide base-load power.

And in some cases, solar panels add to the burden of power utilities, which are forced to pay a high price to meet government mandated renewable targets. This includes boosting distribution networks that were never designed to host what are in effect thousands of mini generators.

As always, it is the poorest consumers - renters and those who are unable to take up the state and federal government subsidies - who are asked to subsidise the solar aspirations of the rich.

NSW was right to pull its solar tariff scheme back into line with other states. But it will not be enough to save NSW electricity consumers the punishing costs associated with decades of neglect and Labor's failure to sell out of the electricity industry when it had the chance.

This week's biggest news story in solar energy was the start of construction of the CSIRO's solar tower project near Newcastle. This project is pioneering world-beating solar thermal technology that has the potential to make a real difference.