Feed-in tariffs for existing solar power users in Tasmania will be locked in at current rates for five years.
Deputy Premier Bryan Green said the decision would protect people’s investment in solar energy after Aurora’s scheme is closed at the end of this month.
“All existing customers will continue to receive the feed-in tariff at the current rate until 1 January, 2019,” Mr Green said.
“This will ensure existing customers are treated fairly in light of the capital investments they have made under the current system.
“We also want to make sure that new customers will be guaranteed a fair and reasonable rate in the future.
Mr Green today announced the new arrangements for solar energy customers in the lead up to the introduction of competition in Tasmania’s energy market next year.
“We have listened to the feedback from industry, customers and climate change advocates and believe we’ve got the balance right.
“There has to be a balance between protecting people who have invested in solar energy and not penalising those who cannot afford it by forcing them to pay higher electricity prices to subsidise the scheme.
Mr Green said with new electricity retailers entering the market next year, the arrangements under which Aurora Energy voluntarily buys excess power from its customers had the change.
To be eligible to be included in the existing Aurora scheme, customers who have not yet submitted connection applications have until midnight on August 30 to do so.
“It is important that both existing and prospective solar users are fully aware of how the new feed-in tariff arrangements will apply to them.
Mr Green said as well as providing certainty for existing solar power customers, people wanting to install solar systems in the future would for the first time be allowed to off-set all their energy costs including hot water and heating.
“The current arrangements allow most households and small businesses to off-set light and power charges and not hot water and heating even when they are producing enough energy to do it.
Mr Green said the new arrangements will not impact on customers whose main aim is to off-set their own power consumption.
A transitional feed-in tariff rate of 8 cents per KWh for new customers will be introduced from August 31 till December 2013, a similar rate to what is offered in other States.
“Most States that previously offered generous feed-in tariffs have already closed those schemes because they were being subsidised by the general customer base through higher electricity prices.
Mr Green said the Tasmanian Economic Regulator will determine the new feed-in tariff before competition starts.
“This will provide a safety net for customers to ensure there is always a fair price for energy exported into the grid.
“It will not prevent new retailers from offering a higher feed-in tariff on top of the minimum rates set by Government to attract solar customers.
The Government’s feed-in tariff policy is detailed in the Final Position Paper which is available on the electricity reform website at: www.electricity.tas.gov.au .
Bryan Green Deputy Premier Sunday 18th Aug 2013
