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Government Inquiry Supports Adoption Of Gross Solar Feed-In Tariff

ATA argues that net feed-in tariffs, adopted by some states, are ineffective and discriminate against stay-at-home parents and the elderly by only paying solar-homes for excess electricity feed back to the grid, after in-home consumption.
by Staff Writers
Canberra, Australia (SPX) Nov 12, 2008
A federal senate inquiry report, supports calls for the adoption of a national gross feed-in tariff scheme that would see electricity retailers paying solar-homes for the clean power they produce, says the Alternative Technology Association (ATA).

ATA, Australia's leading independent sustainable living organisation, is calling for government leaders to bring in a payment for domestic solar or risk falling behind the rest of the world in the transition to a low carbon economy.

"With US President-elect Obama committed to reducing America's emissions, it would be unwise for Australia to treat solar like a boutique optional extra when it could be driving a clean energy future," says Mr Brad Shone, ATA's Energy Policy Manager.

The Council of Australian Governments is scheduled to consider a unified renewable energy feed-in tariff scheme at the up coming COAG meeting (22/23 Nov), after it was swamped by the economic crisis at the October event.

Mr Shone says the adoption of a gross feed-in tariff, that pays solar homes for their climate-friendly electricity, was behind the German solar industry boom.

"20 years ago Australia was the world leader in solar technology. By adopting a gross feed-in tariff, we will be well placed to regain our competitive edge in the global solar market."

"The right incentive will drive investment in domestic solar, boost the local solar industry and help us meet our renewable energy targets, well into future."

ATA argues that net feed-in tariffs, adopted by some states, are ineffective and discriminate against stay-at-home parents and the elderly by only paying solar-homes for excess electricity feed back to the grid, after in-home consumption.

"A net feed-in tariff could see families takings 40 years to pay off their solar panel, but someone with a solar panel on their holiday home would pay it off in half the time," says Mr Shone.

"Only paying people for left overs will not drive large scale uptake of roof-top solar and retard the local industry."

Mr Shone says COAG would be well advised to follow the ACT's lead and introduced a progressive, gross feed-in tariff that pays solar-homes for all the clean power they produce.

"All roof-top solar systems reduce demand on dirty energy sources, regardless of whether the clean energy is being fed back to the grid and powering the neighbour's air conditioner, or directly supplying the solar-home."

"Under the ACT's gross tariff, all households investing in climate-friendly solar power will be able to pay back the up-front costs of their system in around 10 years."

Mr Shone says gross feed-in tariffs are the incentive of choice world-wide, because they create equity in the market by accounting for the full range of benefits roof-top solar provides.

"Solar panels do more than reduce a family's carbon emissions: they reduce demand on our already over stretched energy supply; minimise the need for costly upgrades to the grid; and dramatically reduce household power bills," Mr Shone says.

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