Victorian solar households earn 11.3 cents per kWh compared to 4.7-6.1 cents per kWh for NSW solar households

MEDIA RELEASE – 1 March 2017

The NSW Greens are calling on the NSW government to lift the solar power tariff after the Victorian Essential Services Commission (ESC) set a price for feeding solar electricity into the grid of 11.3 cents per kilowatt hour yesterday, compared to NSW rate of 4.7 – 6.1 cents per kilowatt hour set by IPART.  The ESC increased the tariff to recognise the benefit solar power provides in terms of climate change, network benefits, and environmental benefits.

NSW Greens energy spokesperson, Jeremy Buckingham said:

“The Greens are calling on the NSW government to stop the rip off of solar households and pay them a fair price for the clean electricity they generate,” said Greens MP Jeremy Buckingham.

“Why should Victorian solar households get a fair price for the clean energy they produce, but NSW households are getting thoroughly ripped off?

“Once again NSW is falling behind Victoria in energy and climate policy.  The new energy minister, Don Harwin should amend the terms of reference for setting solar tariff benchmarks to replicate those used in Victoria.

“If the government fails to move to give a fair price for solar, then the Greens will introduce a bill to have price determinations factor in an implicit carbon price, network benefits, environmental benefits and health benefits of solar energy.

“347,000 households in NSW have done the right thing and installed solar panels.  They should be given a fair price that recognises the benefits of the clean energy they produce.”

4 comments

  • The NSW government is exploiting socially aware people who have solar panels. It is fossil sourced power that is costing consumers more and more, While we have not gone right off grid we know many who now have. Eventually the absurd cost and price gouging of transmission will have to stop as stand alone on site generation becomes the norm. Meanwhile Turnbull is trying to have the mirage of clean coal subsidised as though it is a renewable energy- this is really stealing from the thinking taxpayer, who does not want to pay for coal power, which in any case is dangerous for coal miners as well as for all of us. Gas is not much better, either, and is not renewable either of course.

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  • Good on you Jeremy for exposing this anomaly, come on NSW get your act together and pay this fair price for our power. We are hearing about these sort of anomalies far to often. As a solar panel owner I am getting ripped off.

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  • Jeremy, Max…
    IPART sets a benchmark price only, there is no obligation for retailers to follow it, as the market is unregulated (excepting profit margins).

    The question is why the retailer would pay more for solar generation than coal or any other source. And they won’t, because that’s not the way the NEM works. Generation represents <35% of bill costs, or 8-9c/kWh. With more than 50% of bill costs in the hands of the monopoly poles and wires, this is what needs to be tackled in order to get a higher FIT.

    For some context, a shopping centre can resell local solar power to their tenants at retail prices, because they aren't losing half in network fees. This allows them to have an ROI of 2-2 1/2 years on solar PV installs!

    It is the state government who should be under pressure about the cost of their infrastructure. We are paying for their gold plating of a centralised distribution model that simply doesn't stack up in the face of competition from local, renewable energy sources.

    The distribution networks should be transferred back to local government who should then tender out the management to an Ausgrid, Essential Energy, Endeavour et al. This would allow competition for the first time, and for residents to sell electricity locally, bypassing the main grid – in the same model as a shopping centre. IMHO local energy markets are the future.

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    • Hi Arne,
      Sounds good , originally our local council started power generation and this was later taken over by the state, I do not remember any compensation being paid and we end up in the current situation, also please enlighten me as to what IMHO stands for.

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