Victoria: Time for a Fair Feed in Tariff

25th August 2015

John Grimes, CEO, Australian Solar Council, writes (25/8/15) in a media release:

"The Victorian Essential Services Commission (ESC) has published the minimum feed in tariff rate for 2016 in Victoria at $0.05 cents per kilowatt hour. According to the Victorian Electricity Industry Act 2000, the ESC could only consider wholesale electricity prices and transmission losses when setting the feed in tariff rate. This means that the review could not, under law, consider the true value of distributed solar energy. Further, the Commissioner noted that the ESC could not consider the impact of new technologies such as energy storage technology.
"According to John Grimes, the Chief Executive of the Australian Solar Council, this meant the review was conducted 'with one arm tied behind its back. The result?  This decision delivers a transfer of wealth from solar PV owners to electricity retailers. Solar energy exported to the grid is sold to your neighbors at the full retail rate, often upwards of $0.25 per kilowatt-hour. So paying a solar owner $0.05 cents per kilowatt hour for that exported energy is simply unfair'.
This decision represents a direct attack on the hundreds of thousands of solar customers in Victoria. 'We call on the Victorian government to amend the legislation and conduct a fair review, including all of the true benefits of exported solar power, before next year. We need a fair price for solar in Victoria'. The Australian Solar Council is standing by to play a constructive role to bring fairness back to the feed in tariff assessment process in Victoria."
So the utility can take your power and pay you 5 cents kWh and sell it to your next door neighbour for 30 cents kWh or more.  A nice little earner for them and a discouragement for solar.
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