September 26, 2014
The Queensland Competition Authority (QCA) has reminded customers in regional Queensland that the 9.07 cents/kWh solar feed-in tariff paid by Ergon Retail will soon be reduced to 6.53 cents to align with the lower value of wholesale energy after the repeal of the carbon tax.
“Repealing the carbon tax in July this year cut the cost of wholesale energy and therefore the value of the electricity imported into the grid from domestic solar panels,” QCA chairman Malcolm Roberts said.
“In May, the QCA released a report indicating that repeal of the carbon tax would reduce the value of energy from solar panels from 9.07 cents/kWh to 6.53 cents.
“After the carbon tax was repealed, the QCA confirmed the switch to the lower price in a gazette notice on August 11.
“The QCA understands that Ergon Retail intends to apply the new rate from October 1.
“For the QCA, the basic principle is that a fair and reasonable feed-in tariff should be equal to the real value of the electricity sold back to the grid.
“Retailers avoid some costs by on-selling electricity from solar panels to other customers. The most significant avoided cost is the cost of buying wholesale electricity.
“A fair and reasonable feed-in tariff is equal to these avoided costs. Setting the feed-in tariff rate below this level would disadvantage customers with solar panels; setting the rate above this level would just increase electricity costs for other customers.”
NB. The change to the 9.07 cent feed-in tariff will not affect customers receiving the 44 cents solar bonus feed-in tariff. Eligible customers for the solar bonus scheme will continue to receive 44 cents/kWh.
