massive solar boost from the act

This is what happens in Germany, the worlds biggest solar market. If it happens here (as the ACT government proposes) you will see unprecendented growth in this market. Solco are one of the best placed to take a big slice.

Utility cool on ACT solar plan
Cathy Alexander


ActewAGL will fight a plan to make it pay top dollar for solar power.
The ACT Government wants the electricity supplier to increase its solar tariff seven-fold in a bid to tackle climate change. It would be one of the world's best deals for people with solar panels on their roofs.

ActewAGL said the plan was a "feel-good thing" that was not cost-effective and would add to electricity bills. The company does not want to pay the tariff and will lobby the Government to change its mind.

ActewAGL's general manager of retail, Ivan Slavich, said the premium tariff was not a wise use of money.

"It sounds really good and it's popular, but it's not very cost-effective," he said.

The tariff would artificially favour domestic solar power at the expense of more efficient renewable energy sources such as wind farms. People liked the thought of solar panels but the fact was there were better ways to make clean electricity.

Mr Slavich said ActewAGL supported the use of renewable energy but not this plan. Producers of renewable power like solar, biomass and wind are paid 7c a kilowatt hour by ActewAGL, which is partially owned by the ACT Government. Under the proposed law, solar power producers would be paid 52c a kilowatt hour.

"That's a massive increase," Mr Slavich said.

Canberrans would pay for the premium tariff through a levy on their electricity bills, and Mr Slavich said this might not be popular.

"Why should other consumers who don't want to put solar power in have to pay?" he said.

He said ActewAGL had to do what the Government said. If the Government passed the law which is expected to go before the Legislative Assembly next month then ActewAGL would have to administer it.

Mr Slavich said ActewAGL would seek talks with the Government soon.

Government backbencher Mick Gentleman, who is behind the premium tariff plan, said he was disappointed in ActewAGL's response but would continue to push the plan.

He said the tariff aimed to create an incentive for people to produce renewable energy in their homes in Canberra. It did not aim to subsidise any renewable energy plants interstate.

"We're trying to do this within our community," he said.

He said the cost to consumers would be small estimated at $1-2 a month at first, possibly growing to 5 per cent of the electricity bill.

ANU solar expert Professor Andrew Blakers backed the tariff.

He said the solar industry had massive potential but needed serious investment to get over the hump of economic unviability. The technology was expensive but, with investment, costs would plummet long-term.

The tariff would encourage people to invest private money in solar panels, which would boost the industry.

Professor Blakers, director of the ANU's centre for sustainable energy systems, said the proposed tariff would make installing solar panels a financial "no-brainer".

"It's a very attractive rate of return, if you've got a clear sunny roof, rush out and install panels as soon as [the tariff] becomes law."

It costs $13,000-$15,000 to install 1kw of solar panels in Canberra, although there is an $8000 Federal Government rebate.

The ACT Government estimates that with the new tariff, a home's solar panels could be paid off within 10 years, instead of the current 30-40. The tariff 3.88 times the retail price of power on the gross output is one of the world's most generous rebates for solar electricity, on a par with world-leader Germany.

Green groups strongly backed the tariff yesterday, although they said it should be accompanied by a mass retrofitting campaign to cut electricity use across Canberra.

The ACT Liberals have given the tariff in-principle support but want to see more figures. The ACT Greens backed the tariff.

ActewAGL said about 80 Canberra homes had solar cells that were connected to the electricity grid. Only a handful were net exporters of energy.