Review raises fears of solar tariff price shock

NEARLY 18,000 households could face a significant reduction in the solar feed-in tariff at the end of the year.

The feed-in tariff for solar power is set to be slashed at the end of this year.

NEARLY 18,000 households could face a significant reduction in the solar feed-in tariff at the end of the year depending on the outcome of a State Government review.

A tariff of 28 cents a kilowatt hour has applied to early solar users since 2013, but that rate will cease on December 31.

The Government is looking at the solar feed-in tariff in line with an election promise to begin a review within 100 days of being elected in March.

It comes as the Economic Regulator cut the regulated feed-in tariff to 8.541c/kWh from 8.9c/kWh on Wednesday.

A spokeswoman for Energy Minister Guy Barnett said the review was being undertaken by an interdepartmental review group chaired by the Director of Energy Planning.

“A consultation paper will be released for public comment in the coming weeks,” the spokeswoman said.

“A broad range of issues will be addressed in the consultation paper.”

Tasmanian Renewable Energy Alliance executive officer Jack Gilding said there had been no public information about what the new feed-in tariff would be or even how it will be calculated.

“This is of vital interest to the 32,000 solar households and small business in Tasmania,” he said.

“Over half of these customers are facing a drop from their current legacy rate of 28c to the new rate at the end of this year.

“Time is running out for the Tasmanian Government to consult properly with industry and solar owners to develop a plan which manages the end of the legacy [feed-in tarriff] and provides a fair and forward-looking outcome that benefits existing solar owners and all electricity consumers.”

Mr Gilding said households could contribute to the Government’s objective of making Tasmania’s electricity 100 per cent renewable by 2022.

“The Government is clearly focused on looking at the benefits of big projects such as pumped hydro and additional connections to the mainland,” he said. “They also need a clear strategy on how to work with the Tasmanian households who are investing their own money in making our energy system more secure, more decentralised and more affordable.”

Mr Gilding said other states were adopting innovative policies to encourage the installation of solar. In Victoria customers with solar and batteries can be paid as much as 29c/kWh for energy fed into the grid from 3-9pm on weekdays.