Solar Power Feed in Tariff Recommended to go down

Oh, the new rate would be effective for installations switched on after 30 June 2010.

Word on the street (SolarShop sales rep) is the new feed-in tariff will be reduced to 45.7¢/kWh with no additional GST to be paid on that amount. I haven’t been able to find any announcement from GovCo to confirm this claim.

Holden Caulfield said :

Hasn’t the NSW Gov just launched a 60¢ feed-in tariff? Can’t see the ACT Gov going down by such a significant amount if that is the case.

This is my thoughts as well…it would ruin their ‘green’ credibility….but then again, when you look at their track record…

I have had previous dealings with Paul Baxter, Senior Commissioner of the ICRC. I find him well worth taking notice of even though I disagree with some of his other recommendations. However, I agree with this one on feed-in tariffs which I regard as highly discriminatory with lower-income people generally paying for usually richer people who can afford the solar panels.

Hasn’t the NSW Gov just launched a 60¢ feed-in tariff? Can’t see the ACT Gov going down by such a significant amount if that is the case.

“Is that the contract you sign after your panels are installed? Our contract with Modern Solar to install panels doesn’t make any mention of the feed-in tariff. And of course, a discussion about a tariff drop is a concern for someone who has a contract to have panels installed, but isn’t producing any energy yet. If you have that contract, you can at least check whether your price is fixed or not.”

Yes, Modern should most definitely be showing you the Feed In Tarriff contract, it’s the whole reason most people are getting the PV setups in the first place. The form can be filled out prior to activation of the system, but won’t come into effect until after the meter is installed. Otherwise the contract and application forms are available here:

http://www.actewagl.com.au/environment/solar/default.aspx

As for the contracts and price drops, you need not worry if your system is already up and running because you will have locked yourself in for 20 years at the current price, roughly .50 cents per kilowatt hour.
For those who THINK the price might drop and want to get in quick before 01/07/10 would need to have signed the contract AND had the meter installed prior to whatever the potential date of price drop is. ( 01/07/10 being the most likely date)

http://www.actewagl.com.au/environment/solar/feedInTariff.aspx

the premium rate gets reviewed every year – though once you have signed the 20 year contract it does not change. In order to connect your panels to the grid, you are required to sign the ACTEWAGL contract, which has a duration of 20 years.

Im very supportive of the scheme, however I just dont think that many people will sign up for the environmental benefits/carbon reduction – it comes down to $ for most people before they invest $10K or so in a grid connect panel install.

Cheers

Steve

GottaLoveCanberra said :

The Feed-In-Tariff contract you sign when applying for the contract locks you in at that price for 20 years, regardless of ups or downs.

Personally I don’t think we’ll see a drop in the price, especially not after all the trumpeting from the tree huggers we got to see in the lead up to the legislation.

Is that the contract you sign after your panels are installed? Our contract with Modern Solar to install panels doesn’t make any mention of the feed-in tariff. And of course, a discussion about a tariff drop is a concern for someone who has a contract to have panels installed, but isn’t producing any energy yet. If you have that contract, you can at least check whether your price is fixed or not.

The attractiveness of solar panels, though, is more than the feed-in tariff. There is also the house value, and the environmental benefit. The decision to have panels installed wouldn’t have been as quick if the tariff hadn’t been so high, but maybe that’s a good thing too. I think steveu is a bit quick to write off grid connect solar if the tariff is lowered, although it certainly won’t help.

But the other thing that doesn’t help is shonky contractors. Our case is with the Office of Fair Trading at the moment, because Modern Solar have attached panels to our roof and the inverter to our wall, but they’ve failed to have the system connected on four separate occasions when they’ve arranged to do it! The contract is seven months old, and the panels have been up for four months, and ActewAGL have even been sent out twice since the panels went up to do the last part of the installation, only to find out that the contractors haven’t finished their job! I’ll persevere regardless of the tariff, but that’s mainly because we’ve gone too far to turn back…

50c is FIXED for 20 years. you can safely assume that the price per KW will go up a cent a year…and when you take into account the interest you would be paying on the loan required to install these panels…it is a series of diminishing returns. 20 years is a long time to be locked into a fixed price on a contract. Trying to reduce the feed in to what is being proposed will completely kill grid connect solar here for sure.

Shame.

What about those who are unable to avail themselves of this excellent idea. The government should provide houses for those who live in apartments and subsidise those who can’t afford them. We need a class action about this equity issue. We all need the chance to do something ineffectual to save the planet. Will the planet notice?