SA solar consumers protected by minimum price set for solar

South Australian households and small businesses will benefit from the news today that the Clean Energy Council released a recommendation to set a minimum price for the solar energy they generate.

Russell Marsh, Clean Energy Council Policy Director, states that the Essential Services Commission of South Australia (ESCoSA) have released a draft price determination which would go towards protecting consumers who are investing their money in good faith to take the sting out of their increasing power bills.

Mr Marsh said “South Australians who invest in solar power systems deserve reasonable payment for the clean energy they supply to the power grid.”

Although ESCoSA’s recommendation of setting a minimum price for solar does not fully do this, there are concerns for consumer and industry groups given that some electricity retailers have put forward a proposal to take away the minimum price for solar altogether.

ESCoSA are testing the strength of competition in the market by slightly reducing the level of the solar feed-in tariff.  They also recommend that new solar customers should shop around for the best deal.

“The industry had argued strongly to retain a minimum price for solar” Mr Marsh said.

Mr Marsh also said “the introduction of a mandatory minimum price which will assist in ensuring a fair go for solar customers.” The acknowledgement by the head of ESCoSA regarding the industry’s concerns is extremely pleasing.”

The draft proposal by ESCoSA sets a minimum value of 7.6 cents per kilowatt-hour for the electricity from solar panels pad by electricity retailers.

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.