Solar-powered households could be forced on to time-of-use tariffs, which would limit the bonus residents receive from selling power to the grid. Source: The Courier-Mail
SOLAR-powered households could be forced on to time-of-use tariffs to ensure they pay their share of network charges.
A report ordered by the Newman Government has recommended the highly-controversial move after finding the current solar schemes were hurting lower income households.
The report found that by 2015/16, the cost passed on to all electricity users from paying for home-produced solar power would drive up the average annual power bill by $276, or about 17 per cent.
"When those doing the paying are likely those least able to afford it and those enjoying the benefits are those likely to be most able to afford to meet their true costs, then something is truly wrong," the Queensland Competition Authority report said.
Industry insiders are convinced thousands of solar households maximize the benefit of the 44-cent feed-in tariff they receive by selling all the power they produce during the day and using only grid-produced power at night.
This way they received 44 cents per kWh for the solar power they produce while paying the retail rate of about 23 cents per kWh for what they use.
The QCA report found one way to reduce the impost being passed on to other consumers would be to switch solar households to the time-of-use tariff, which is currently voluntary.
Time-of-use tariffs offer off-peak price discounts but make power more expensive at night when there is increased demand.
"In this regard, it would go some way to reducing the problem of PV customers avoiding a portion of the true cost of their network access due to their net consumption profile, which leads to higher average variable network charges," the QCA said.
The Government has repeatedly promised to continue paying the 44 cent feed-in tariff but last year cut off the scheme to new participants.
Other QCA recommendations included:
* Making electricity retailers, rather than Government-owned distributors, pay for household-produced power.
* Creating a competitive market for household solar power in the southeast and establishing regulated price of between 7 and 14 cents per kWh throughout regional Queensland.
* Introducing mandatory retailer contributions that reflect the direct benefit they get from onselling solar power.
* Transferring the costs of the solar feed-in tariffs from the distributors to the Government.
Energy Minister Mark McArdle has this afternoon reconfirmed the Government commitment to the 44 cent feed-in tariff but will consider the report's recommendations.
"It is important that any response reflects the long-term direction the Newman Government is proposing for the electricity industry," he said.
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