Newman commits to the 44c feed-in tariff whilst electricity prices rise

Homes and businesses with solar systems will continue to be paid generously for the power they produce while other consumers front the cost.

The Newman Government has committed to keeping the 44 cents feed-in tariff for power generated by existing solar systems despite the decision impacting vulnerable customers.

The Courier Mail last week revealed projections from the Queensland Competition Authority showing households will pay approximately $240 annually in 2015-2016 to cover the 44 cents feed-in tariff for existing rooftop solar systems.

A huge uptake of photovoltaic (PV) solar systems sees more than 200,00 households currently paid the 44 cents tariff with another 100,00 eligible to access it after pre-purchasing PV systems earlier this year.

However the Newman Government has temporarily cut the tariff for systems purchased after July 9 to just 8 cents, ahead of a review targeted at establishing a “fair and reasonable” price for home-made power.

Currently many households are now earning money from the electricity they produce rather than paying for it.

Solar households often avoid paying for network and infrastructure costs because they are able to use very little, if any, of the common consumer tariff.

The QCA also found that the common consumer tariff would have to increase by an average of $40 annually, on top of the $240 slug, to recover network investment avoided by solar users.

The Author

Darryn Van Hout

I developed an interest in the Australian energy and construction sectors more than a decade ago and have since closely followed the trends, technologies and developments shaping both industries. My involvement in the Australian solar market began in 2008, and over the years I have built strong connections with professionals, businesses and organisations across the construction, solar and renewable energy sectors in Australia and internationally. These connections include solar panel and inverter manufacturers, electrical and construction industry professionals, software developers creating tools to quote, monitor and manage solar power systems, and media organisations that closely follow developments across energy, construction and renewable technologies. Today, I continue to contribute as an industry advocate, author and commentator, sharing practical insights and information to help Australian consumers and businesses better understand solar power, energy technologies, construction-related developments and the changing Australian energy landscape.