Report calls for gross feed-in tariffs

Tuesday, 11 November, 2008

In a report, the Senate Committee noted strong industry, consumer and government support for feed-in tariff schemes and recommended that the federal government work as quickly as possible towards agreement on a national feed-in tariff framework.

The CEC’s solar industry spokesperson, Andrea Gaffney, said the report favoured the use of gross feed-in tariffs, which would apply to all the energy generated by these technologies, paving the way for the federal government to adopt a national approach.

“Gross feed-in tariffs will provide stability for the solar and other emerging renewable energy industries to invest in Australia’s clean energy future,” Gaffney said.

“A nationally consistent gross feed-in tariff would reward investors for the savings they deliver to the electricity grid through avoided distribution losses and infrastructure costs.

“A gross feed-in tariff would formally recognise these benefits and help provide stability to the solar PV industry given the prevailing uncertainty surrounding the future of the federal government’s solar rebate program.”

Five state and territory governments have already announced a range of feed-in tariff schemes. While their support is welcome, there is wide variation in the design and operation of these schemes, creating inconsistencies for business and consumers which will increase costs and complexity, create market distortions and will ultimately not help the development of the renewable energy industry.

“The industry is keen to transition from rebates and the Council calls upon the federal government to act on the recommendations in this report and quickly adopt a nationally consistent gross feed-in tariff framework and sure up industry certainty," Gaffney said.


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