Govt payment for solar power hailed as bright idea

Canberra Times
Thursday 10/4/2008 Page: 5

Canberra has been hailed as the new solar capital of the nation in the wake of proposed laws that would pay residents for producing solar power. But retired graphic designer Bill Gresham is already at the forefront of the movement. Mr Gresham has installed photovoltaic panels on his roof which allow him to generate his own solar electricity amounting to about 1.1 kW.

In the winter he only produces a quarter of the electricity he needs but in summer he breaks even. Mr Gresham said the new legislation would go a long way to promoting the take tip of solar electricity in Canberra. Because the tariff will pay for the gross amount of solar power he produced, Mr Gresham could turn a profit in summer, selling electricity back to the grid.

In winter, when his consumption outweighed his production, he said he would probably slash his power bills. "I probably would not make a profit in the winter but the main thing is it would reduce my payback time from well over 20 years to about 10 years," he said. "It would mean that I would get my money back before I die." The ACT will have the most generous solar feed-in tariff in the country under proposed legislation from Labor MLA Mick Gentleman.

Households which produce solar power will be paid a premium of 3.88 times the market rate for all the electricity they generate. They will be guaranteed payments for 20 years after signing tip to the scheme. In combination with the Federal Government's $8000 rebate on solar panel installation, Mr Gentleman says the scheme should allow Canberrans to recoup their solar power costs within 10 years. The proposed laws are twice as generous as a similar feed-in tariff which will be introduced in South Australia in June.

ACT Conservation Council climate campaigner Genevieve Wauchope said the scheme was the best on offer in Australia because the tariff applied to the gross amount of electricity produced by households - not just the net amount fed into the grid. The solar feed-in bill is likely to pass in the Assembly after Mr Gentleman won support for it in caucus. Mr Gentleman said the Federal Government could learn from the legislation.

"I trust that [Federal Climate Change Minister] Senator Penny Wong will look closely at the model contained in my bill when advocating for a nationalised approach to feed-in tariffs," he said. But for people like Bill Greshain, the bill is relevant for a more personal reason. "My reasoning is that it's a gift for my grandchildren's generation."