National Update - Major Solar Changes
Beyond NSW, solar policy is impacting solar all across the county.
This update (which is longer than usual) summarises the major solar developments.
Collaboration Report
As you have seen in NSW we are keen to work with like-minded organizations, and continue to work with Australian PV Association (APVA), who provides valuable and detailed policy analysis in the PV sector, which has been very useful in our current campaign.
The Solar Energy Industries Association (SEIA) has also been a close and active partner in our ongoing work to get a nationally consistent fair price for solar.
ORER
In an effort to stabilise the STC market, the Office of the Renewable Energy Regulator (ORER) will be providing an updated STC forecast for 2012 shortly.
In the coming weeks AuSES will organize round table meetings in Sydney and Melbourne to allow industry to directly brief the ORER on their market projections, and help the ORER make the most accurate forecasts they can. If you would like to be involved, please send me an email.
The ORER has recently provided the following updates you may be interested in:
- Transitional arrangements for the reduction in Solar Credits Multiplier
- More stringent requirements for initial quotations and estimates for solar systems
- A revised STC upload capability, including reinstating the bulk upload function
- Increased fees for the creation of Small-scale Technology Certificates (STCs) from 8 cents each to 47 cents. (This will, in part, fund an ongoing inspection and review program).
Do you sell PV systems? If so you may care to note that if a contract was in place with your customer by 5 of May 2011, and a Statutory Declaration is supplied to ORER, then the transitional multiplier of 4 may still apply.
For full conditions and exclusions see the Regulations and Explanatory Statement at the Comlaw website. (Note that the system must be installed by 30 June 2012).
The good news is that the Queensland Government recently announced that 44c per kWh net FiT rate would remain unchanged.
They have however, reduced the maximum eligible system size under the QLD Solar Bonus scheme to 5kW per premises. The other change is that in future, only one eligible grid connected PV system per premises will be allowed.
• Previously a10kVA capacity for single phase power and 30kVA capacity for a 3 phase power connection were allowed.
• Before 5pm, 7 June, it was possible to have multiple PV systems installed at the one premises. For example, where there are number of separate electricity accounts/NMIs at the one premises then it was possible to have a separate PV system grid connected, each of up to 30kVA for each account.
• For more info please see here.
SA
The current FiT is 44c/kWh (net) with an extra 6 – 8 c/kWh coming from some retailers. Current customers will have access to this FiT until 2028.
On the 1st of October this will drop to 16c/kWh from the government, and an additional 6c/kWh from some retailers. The new scheme will be open to applicants until 2013, with the scheme to remain in place until 2016.
The current electricity price average in SA is round the 20-25c/kWh. However, recently AGL was granted a 17% electricity tariff increase.
AuSES SA is organising a public information session on the local FiT to inform the public about what is happening/has happened and to dispel some of the misinformation.
To register please email admin@auses.org.au.
VIC
In Victoria, a review of the premium feed in tariff is planned, as the 100MW fast approaches. Indeed, the government will make an announcement about the future of the scheme in late July.
Current premium tariff customers will get the existing tariff until 2024. To be eligible for the premium rate, you must have the solar panels installed, along with a bi-directional meter and a contract in place for the premium tariff. Given that this takes some months to complete, it is important the government thinks through any transitional arrangements it puts in place, if changes are planned.
We understand the government has indicated that in the event that the scheme is scrapped altogether, the standard tariff will still will apply.
AuSES will provide the highest quality input that we can into any review.
WA
In WA the 150 MW cap is also fast approaching. In August last year a 47 c/kWh (net) FiT was announced, but it has been recently reduced to 27c/kWh, (20c/kWh from "community" and 7c/kWh from electricity retailers, such as Synergy.
Further North in Carnavon – Horizon Energy recently closed all applications for grid connect PV. What happens next? Again, no transitional arrangements have been put in place, and we fear another 'bust' for the solar industry in WA.
NSW
In NSW, it is estimated that at least 5,000 of the previous 8,500 solar industry workers will lose their jobs within weeks, and a significant number of companies – both large and small – are expected to close their doors. This is due to the immediate termination of the Solar Bonus Scheme, with no transitional arrangements in place for the scheme. We continue to seek an immediate announcement from the NSW governments to put solar companies in NSW back to work.
ACT
The ACT has a target for 240MW of solar production (around 25% of the territory's total power needs), made up of:
• 15MW for 'micro generation' - systems up to 30kW;
15MW for systems between 30kW and 200kW; and
210MW for large scale solar with a 40MW first tranchein an auction in 2011 (see here for more information).
Recently the ACT government announced that the micro-generation cap had been reached, and the scheme was closed, with all contracts 'made in good faith' to be accepted.
On the 30 of June the opposition and cross benches joined in the ACT Legislative Assembly to pass a transitional extension to the 15 MW cap for "micro generation" (a 45.7c kWh FiT).
This now means micro-generation will continue to be supported, however at the expense of the15 MW tier, intended for medium installations of up to 200 kW, (originally a FiT of 75% of 45.7c kWh ie: 34.27c kWh).
The amendments create a new FiT for systems up to 200kW at 66% of the premium rate (30.16c kWh).
By allowing all 'good faith contracts' the actual take-up of the former Micro category is likely to be about 23MW – leaving just 7MW available for this extension.
The new cap – a total of 30MW – is fixed ie: there will be no capacity to exceed it. This is expected to last only months at best before it is met, and the ACT will revert to a 1:1 gross net tariff offered by retailers (not legislated).
Details are available on the ACT website.
NT
The NT Government brought the solar industry in cyclonic regions to a stand-still by not accepting industry recommended and national standards for the safety of roof-mounted solar panels.
Key challenges have now been resolved as the result of extensive work by CAT Projects, Brian Elmer from Alice Solar City, and Muriel Watt from the APVA. It was a shame CEC were not able to provide more help.
The resolution for non-cyclonic regions is that any house under 5 years does not require a building permit, although those over 5 years will need a simple inspection (without a formal permit).
For cyclonic regions the outcome is not ideal, but is reasonably fair in that the PV module manufacturers are able to get their modules on the "deemed to comply" list if they submit to appropriate tests, (which several manufacturers are now completing).