Households will be hit with a $240 annual electricity bill price hike to compensate for the power produced by rooftop solar systems.
New modelling by the Queensland Competition Authority (QCA) has revealed that by 2016 almost 15 per cent of a households total power costs will directly fund the feed-in tariff.
The Newman Government recently announced plans to cut Queensland’s net feed-in tariff for home-produced power for all systems purchased after July 9 next year.
However the latest QCA figures may prompt the Government to reduce the 44 cent kWh tariff for current customers.
The Government is exploring ways to reduce network costs as the current price for moving electricity from power generators to homes accounts for about 50 per cent of all electricity bill prices.
The QCA modelling also estimates that costs incurred by solar for consumers will fall by 2020 to just under $100, or 6 per cent of annual power bills.
Energy Minister, Mark McArdle said the Government’s decision to cap the feed-in tariff scheme has already produced significant savings, falling by $300 million.
“This cost is passed through to all households in the form of higher network charges, adding to the burden of this scheme,” said Mr McArdle.
“Labor is continuing to claim that renewable energy schemes are decreasing the cost of electricity, this is untrue and the modelling by the QCA should help end this.”
The QCA has been tasked with developing a ‘fair and reasonable’ feed-in tariff by early next year.