Feed-in tariff cut for solar

HOUSEHOLDS planning on installing solar panels will miss out on a key incentive when the state government’s feed-in tariff is cut in four weeks’ time.

It is the second announcement affecting the renewable energy sector in a week and has angered sustainability groups.

Last week wind farms planned for Woodend and Castlemaine found out they would face building restrictions after the state government set up ‘no-go zones’ and planning restrictions.

Energy Minster Michael O’Brien announced the premium feed-in tariff for rooftop solar panels would be reduced from 60¢ per kilowatt hour to a temporary price of 25¢ for houses not signed up by September 30.

“There’s a big impact for those people who have solar panels installed but not yet connected... particularly for bigger systems,” Goldfields Solar Hub project spokeswoman Karen Corr said.

The Bendigo Sustainability Group has written an open letter to Premier Ted Baillieu outlining its opposition to the wind and solar announcements.

“We are perplexed to understand your position on this considering you were advocating for a gross feed-in tariff scheme prior to the election,” it read.

Mr O’Brien said the new price for power fed back into the grid would ensure “families without solar panels do not face unreasonably higher costs through their electricity bills”.

This claim was rejected by Bendigo Sustainability Group and the Alternative Technology Association, who said electricity prices would go up regardless.

The ATA energy projects and policy manager Damien Moyse said it could now take to 15 to 20 years to pay off solar systems as the temporary tariff only lasted five years.

The premium feed-in tariff was introduced by the Labor government to encourage solar panel uptake but was to be reviewed once 100 megawatts was reached by producers.

Houses already receiving the 60¢ feed-in tariff will not be affected by the new rates.