New South Wales 'ripped off' by solar power proposals

26th Mar 2012

The Australian government has so far failed to recognise just how important solar panels are to the national energy supply, a thinktank has emphasised.

As a result, you could be overcharged for the cost of your energy – a situation that might not improve anytime soon, indicated Beyond Zero Emissions.

It was responding to a report from the Independent Pricing and Regulatory Tribunal (IPART) in New South Wales, which recommended that feed-in tariffs without fees should be made more widely available.

However, IPART believes these should only be made available if you are not eligible for other NSW government initiatives, such as the Solar Bonus Scheme.

Beyond Zero Emissions argues that this could lead consumers to lose thousands of dollars off the price of solar panels they have already purchased, leading to a state-wide rip-off.

Matthew Wright, executive director of the group, explained that big energy companies are likely to be the only winners from this situation.

Electricity customers are disadvantaged regardless of whether they decide to install solar power systems or not.

"As more and more solar power owners get underpaid for the electricity they produce, the wallets of the big old coal generator retailers will get fatter and fatter," Mr Wright explained.

Should IPART's recommendations be adopted, then they will result in a "huge profit windfall" for electricity generators and retailers at the expense of Australian homeowners, he added.

If owners of solar power systems were being paid a fair price for the electricity they produced, then everyone would benefit from lower bills, Mr Wright stressed.

One way of achieving this would be to adopt a more appropriate feed-in tariff, which would encourage more people to install solar panels and lower the cost of wholesale electricity.

Mr Wright illustrated: "At five to ten cents per kWh, consumers with and without panels are being short changed by greedy power companies, fully protected by IPART and ultimately the NSW government."

He described IPART's suggestion as a "less than optimal path" towards Australia's future and not to mention a rip-off for, the people who buy the electricity from the grid.

You may have seen recent figures from the Energy Users' Association of Australia, which indicated that Australians are paying among the highest prices in the world for our electricity.

Costs were revealed to be higher than in Japan, the European Union, the US and Canada, with the upward trend showing little sign of slowing.

Posted by Bob Dawson

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: