Greens push solar tariff

Sydney Morning Herald
Monday 23/2/2009 Page: 6

THE Greens intend to step up their campaign for the state seat of Marrickville held by the Deputy Premier and Minister for Climate Change, Carmel Tebbutt, as the Government grapples with a decision that could increase use of solar energy. A State Government panel is considering the establishment of gross or net "feed-in" tariffs to be added to the electricity bills of all households to cover payments made to people who generate surplus solar energy on their rooftops and sell it to power companies.

Households generating solar energy would receive a higher payment under a gross tariff for installing solar panels. Under a net tariff, they would receive a payment only for the electricity sold to the network. Muriel Watt and Robert Passev, researchers at the Australian Photovoltaic Association, examined data collected by the Centre for Energy and Environmental Markets at the University of New South Wales and found that a gross feed-in tariff would cost all households 3 or 4 cents a week.

A coalition of interests from the Property Council to the solar industry, environmentalists and unionists want the Government to commit to a gross tariff. The Federal Government decided the matter should be determined by the states. So far Victoria and Queensland have opted for a net tariff, while the ACT and Western Australia have chosen a gross tariff. The Government has made it clear that any feed-in tariff scheme shall not impact disproportionately on all energy consumers," Ms Tebbutt said.

Indirect subsidies through an electricity tariff are given as the reason that Germany and Spain have been able to increase use of solar energy. In Germany the gross tariff costs about 24 cents a week a household and has created 42,000 jobs and 1500 businesses. The State Government has set up a taskforce from the departments of the Environment, Energy and the Treasury to study the matter and make a recommendation. The panel is expected to suggest a net tariff.

The costs of implementing a gross tariff are insignificant compared to the benefits to NSW of kick-starting a solar industry," the NSW Greens MP John Kaye said. The Greens polled over 40% of the vote in Marrickville after preferences in the last state election, putting them in a strong position to win the seat and the nearby seat of Balmain at the next election.