Government announces short-term bonus to ease shock of solar feed-in rate cut

Thousands of residents with solar panels will be given a slight reprieve from a cut in the rate they are paid for power they contribute to the electricity grid.

The State Government is offering a slight reprieve on the cut to the solar feed-in tariff. Picture: AAP

THOUSANDS of residents with solar panels will be given a slight reprieve from a cut in the rate they are paid for the power they contribute to the state’s electricity grid.

Households who installed their solar, wind or other renewable energy systems before September 2013 have been receiving 28 cents a kilowatt-hour for energy they produce.

This rate was due to fall to the new general rate of 8.5c/kWhr on January 1, but Energy Minister Guy Barnett has announced a 5c/kWhr bonus to ease the transition for the next year.

The changes are expected to affect around 30,000 households.

Mr Barnett said that from the beginning of 2020, all households would be paid the same 8.5c/kWhr rate.

“We believe this is fair. We have the most generous premium rate but it was never meant to last and was due to expire at the end of this year,” he said.

“The rate is no arbitrary figure. The Tasmanian Economic Regulator sets the regulated rate, which is currently 8.5 cents per kilowatt hour. In 2019 the Regulator will also investigate the merits of a time-of-use feed-in tariff and will report back later next year.”

Greens energy spokeswoman Rosalie Woodruff said cutting the rate of the solar feed-in tariff would discourage new residential solar installations.

“Minister Barnett’s solar tariff cut will give no comfort to people who invested in technology to generate solar power,” she said.

“Tasmanians endure the highest electricity prices in the country, primarily because state-owned energy companies, under the direction of the Liberal Government, have constructed pricing regulations that ensure dividends return to the State Budget.

“Tasmania needs to invest in new solar and energy-efficiency programs. It’s a critical step in transitioning to a zero-carbon future.

“Tasmanians should be encouraged to generate their own clean, green solar power. But a

Liberals’ policy to cut the feed-in tariff will only slow our transition to solar.”

Government spokesman said claims that Tasmania had the highest electricity prices were “emphatically false”.

“Reports have consistently shown that Tasmanians enjoy the lowest energy prices across Australia,” he said.

“As far as a lower feed-in rate discourgaing the take up of solar, we have had no indication that there has been any reduction in the number of Tasmanians installing solar panels.”

The Federal Labor Party on Thursday promised subsidies for 100,000 household batteries as part of a $15 billion plan for energy transmission and generation if it wins the next federal election.

LABOR REVEALS $15 BILLION ENERGY PLAN

The investment includes money for a second electricity interconnector cable to Tasmania, to help support the “battery of the nation” plan.

Households would also get large discounts on energy-saving batteries to support their solar panels.

The Smart Energy Council estimates new household battery systems could help homes save more than 60 per cent on their power bills.

with AAP