Existing customers will still enjoy their higher tariff for five years but the new rate will apply from the first of January next year and will continue for six months. This rate would then be adjusted on an annual basis. The application to lock-in the premium tariff was closed to new applicants last August 30.
The changes to the feed-in-tariff arrangements are part of the Tasmanian Government's reform of its electricity supply industry. The introduction of full retail competition by the sale of Aurora Energy's customers to private sector retailers by the first of January next year required the Tasmanian Government to ensure that "existing and new customers who export electricity to the grid will receive a fair and reasonable rate for this energy through the transition period and into the future" according to Final Position Paper of the Tasmanian Energy Reform.
Arguments for keeping the premium feed-in-tariff in place include the protection of the investments made by solar customers under the current net metering buyback scheme (NMBS) as well as the need to support, recognize and/or subsidize the broader contribution of the solar industry to the Tasmanian economy. To address the concerns of solar customers who invested in solar systems, the Government has dealt with the issue with the legacy arrangement for existing customers.
The net cost of the premium feed-in-tariff to Aurora Energy is currently AU4.2 million and this amount continues to grow with additional installations. This cost would have to be borne by Tasmanian taxpayers, customer without distributed generation systems or through retailer pass-throughs.
Solar consumers rights group Solar Citizens has recognized several positive results with the government's moves which include extending the legacy tariff from 3 years to 5 years. Another positive development that they cited include the rule that eligible systems ordered before the deadline can be installed any time in the next 12 months.
However, Solar Citizens says the interim 8 cents feed-in-tariff is very low and that this rate is "justified mainly be (sic) reference to mainland determinations and takes no account of the different circumstances in Tasmania." The group says a feed-in-tariff in the range of 15-20 cents per kilowatt hour would better reflect the benefits of solar to the state.
Save Our Solar Tasmania has a similar petition to protect the 1:1 feed-in-tariff. The group has already gathered over 2,500 signatures as of September 13, 2013.
"photo credit: Matthew T. Rader via Flickr cc"
The post Tasmania feed-in-tariff cuts gets backing from Economic Regulator appeared first on Solar power today.
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