Solar power cap to shut out latecomers

Adelaide Advertiser
Tuesday 14/9/2010 Page: 33

THE solar feed-in tariff scheme designed to encourage green energy use is likely to be closed to new entrants by the end of next year, if not earlier, under a proposed limit. The proposed legislation would increase the tariff by 10c, to 54c, but once total installed capacity of solar power units reaches 60MWs, the feed-in tariff to homeowners will end. The Government and ETSA both believe the 60MW limit, which would cover about 44,000 SA households, will be reached rapidly given the current rate of 250 new solar panel installations a week.

About 18,000 SA households and groups are already signed up for the scheme and generate a combined 25MW. The feed-in scheme cannot be some form of a blank cheque. Renewables SA commissioner Tim O'Loughlin said. "There needs to be a balance between encouragement to households and the cost of the scheme", he said. "The idea is to lessen financial disadvantage and build support for early mover households willing to make the financial sacrifice (of installing the system)".

Greens MLC Mark Parnell welcomed the increased tariff bonus and the move to mandate electricity retailer payments to consumers, but said the new limits meant "the Rann Government still regarded solar as a boutique sideline rather than a major energy player". "It will put a stop to the scheme just when it starts to generate real momentum. This short-term thinking artificially creates a boom and bust cycle", Mr Parnell said.

Under the scheme, power suppliers pay participants for the net quantity of power fed into the grid - with the cost actually being borne by other electricity users. Mr O'Loughlin said the scheme was intended to encourage households to become energy self-sufficient and not to generate additional income streams. There is also a 45kW-hour per day cap, which excludes larger installed systems that were part of the original scheme introduced in 2008 legislated to reward users until 2028. Industry player Solar Shop Australia welcomed the added incentive but said the 45kW hour per day cap would limit incentive for commercial scale installations.

"If solar is to be truly embraced by more Australians, there needs to be substantial incentive for the commercial sector to invest in solar technology", Solar Shop Australia founder Adrian Ferraretto said. "There is enormous potential for solar panel manufacturing in Australia if there's a greater demand for large scale solar farms and commercial developments", he said. Solar Depot has been urging regional land owners and businesses to turn unused hectares into large-scale solar farms (10-30kW systems) to benefit from returns in the form of feed-in tariff and Renewable Energy Certificates.

Solar Depot sales manager Danial Walters said 10kW systems were still eligible and would mean regional domestic users could now put in larger systems, and "design it to meet the 45kW hour limit". "The real disadvantage is the 60MW cap", Mr Walters said. "It's going to be a busy year for us, but the overall reality is that people will eventually benefit from producing their own energy instead of taking it from the grid". He also said it was too early for wind power to be included in a tariff scheme.