Australian government at a solar power crossroads

19th Aug 2013

The Australian government, particular in Western Australia (WA), is currently dealing with an unanticipated problem.

While many agree throughout the country that higher adoption of solar power technologies is certainly good for the sustainability of Australia and the reliability of its electricity distribution network, implementation is also coming with added costs the government must now deal with.

ABC recently spoke with one resident who installed solar panels on his roof to get a better understanding of why solar power has proliferated so much in the past few years. To David Wapplington of Karrinyup, the decision to turn his home into a solar generation facility was made simple by the government's generous tax incentives.

The WA government gave him an $8,000 rebate, and he then spent another $16,000 on the system to generate another two kilowatts of power. Under a program that pays residents for any excess power they introduce back into the grid, every kilowatt counts.

"I want to retire and the last thing I want is escalating energy bills so I invested in solar panels," he told the news source.

And Wapplington's story is not unique. This has occurred all over the state, and as the number of solar power installations rises, so is the total value of the rebates the government must award.

Mounting problems

This culminated last week when the WA government announced it would cut the per-kilowatt rebate in half, and shortly recanted this decision.

Although the government changed its decision after only one day, it was still enough time for many groups to start looking into the legal repercussions of going against contracts signed by residents.
Now, the government will need to figure out how to pay for the huge number of solar installations in WA – a number that is growing by the month.

About 13,000 households had installed the technology in 2008. Fast forward to 2013, and this number skyrocketed to more than 1 million households. About 75,000 of these installations occurred in WA.

To prepare for even more installations, Premier Colin Barnett said it was possible that solar power homes may have to pay additional fees, after it was reported that electric utility Synergy could run into financial trouble if this trend continues.

"It's fair to say that electricity consumers, all of us, whether we've got solar panels or not, maybe we should be paying a fixed component for all the infrastructure, particularly the power line system," he said.

Posted by Mike Peacock

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Government Rebate & Regulations

The election that could cast a deep shadow on solar power
This just in: You are nothing but a means to profit for big utilities and NSW government
The Tongans know a bad solar deal when they see one
Solar feed-in tariffs: Who's getting screwed?
Australian government at a solar power crossroads
WA government admits fault in solar rebate debacle
WA Government saves millions while solar customers are up in arms
SA's solar feed-in scheme costs to rise higher
CEC slams FIT deregulation in SA
Carbon tax announcement 'just a ripple'
Industry reactions to Rudd carbon price changes
New government 'must be made aware of renewable achievements'
Solar features prominently in ARENA funding plans
Calling all solar panel installers - 'save clean technology grants'
Manufacturers set to see bright side of economic slump?
Coalition government 'could spell bad news for solar'
'Not FIT for purpose' - ACT government on tariffs
QLD government under fire for negative solar stance
China's first trading emissions scheme begins
Details of the Queensland solar controversy
Solar panel reprieve for Queensland
Tasmania's solar future no longer too uncertain
Renewable energy funding on the brink
The Clean Energy Council calls for more renewables
Reactions to renewable energy decisions from the 2013-14 federal budget
Federal budget announcement offers a mixed bag
The impact of the carbon tax
Govt energy efficiency success
Renewable Energy Target achievements
New funding for solar panels
Australia and China further carbon cutting collaboration
Examining Australia's environmental efforts
Renewable Energy Target survives its review
Solar powered cinema a possibility
New licensing will make it easier for solar installers to work across states
Renewable recommendations for WA
Renewable energy target hangs in the balance
Deadline approaching for QLD PV installations under 44 cent solar tariff
Electricity emissions down since carbon tax introduced
Reactions to RET review final report mixed
CCA: RET on track to achieve goals
Experts slam Solar Credits decision
Government support 'needed for commercial solar development'
Shadow ministers slam ARENA withdrawal
Industry expert lauds solar PV impact
Australian Solar Council chief hits back at CCA review suggestion
Australian Solar Council debuts solar electorate map
CCA report 'victory for common sense'
Productivity Commission draft 'good for solar'
SA solar campaign reaches government level
 To get your quotes, please enter your postcode: