Plans for new solar feed-in tariffs spark profiteering fears

[admin]

SOLAR customers could unfairly profiteer from new tariffs that pay them substantially more to feed excess power to the grid during peak demand, it has been warned.


Concerns have been raised about those with storage batteries potentially exploiting the system at the expense of people without rooftop panels.


The amount retailers must pay solar customers for excess energy exported to the grid is known as a feed-in tariff. In Victoria, part is a government-ordered reward for reducing carbon emissions.


From July, Victorian retailers can choose to offer a time-varying tariff and/or a standard flat rate.

Victorian Council of Social Services acting CEO Mary Sayers said rules were needed to ensure businesses and households did not exploit the system by charging batteries using mains power when energy was cheap, only to sell that, rather than solar energy, back for peak-time profit as high as 200 per cent.


The Essential Services Commission has paved the way for time-varying minimum feed-in rates of 7.1c per kilowatt hour off-peak (10pm-7am), 10.3c/kWh in shoulder periods, and 29c/kWh at evening peak (3pm-9pm weekdays).


The single-rate minimum will drop to 9.9c/kWh, down from 11.3c. Rates include a 2.5c/kWh reward for the avoided “social cost of carbon”.


“We can’t have people gaming the tariff system and profiteering,” Ms Sayers said.

“Such a practice would do nothing to ease power prices or help the environment. Steps should be taken to ensure they are only rewarded for renewable energy exports to the grid.


“We are also concerned that as these new types of tariffs #become common, retailers will pass on extra costs at peak times to customers who can’t afford solar and are dependent on the grid.”


In response to fears about possible abuse of the system, the Essential Services Commission said in its recent tariff decision that solar battery penetration was currently low.


It said: “We consider these concerns to be more relevant to future FiT (feed-in tariff) setting processes ... We recognise the issue raised (and) will continue to work with the relevant agencies on the appropriate FiT arrangements”.