Victorian PV FIT to be slashed
18 May, 2012
The Victorian Competition and Efficiency Commission (VCEC) released its its draft report into PV FITs in that State today.
No big surprise that they have recommended that the FIT support should be cut; when the scheme reaches 75MW or by the end of 2013, which ever comes sooner.
We estimate based on current uptake levels, that the 75MW will be reached within 3 months, causing yet another boom bust cycle for our industry.
What is most disappointing is the consistently misleading rhetoric from Governments. VCEC commissioner Deborah Cope said the proposed changes aimed to remove inefficiencies, hidden cross-subsidies and market distortions. “Overly generous subsidies are regressive as they increase energy prices for everyone, including renters and other consumers who do not have the capacity to invest in solar PV systems,” she said.
And in a flash the SunHerald and others have jumped on the same old deceptive, “solar is to blame” bandwagon. Its clear where their advertising revenues come from and which industries they work for.
What a crock.
The AEMC showed in its November 2011 report that Victoria’s Premium FIT would cost Victorian electricity consumers 0.28% of the average 2012 bill(that’s about $3.80 per year) and the Standard FIT, in place since January 1st 2012, would add less than 0.1%. In the following financial year, the proportion drops even further.
Energy (and other) industries across the country receive subsidies, support and incentives to help create employment, future prosperity and a healthy growth rate for Australia’s economy, and the solar PV industry is yet again being targeted NOT because it contributes any meaningful cost (or saving),, but because its politically easy to target a small industry.
Intriguingly, VCEC also highlighted that the valuable contribution of solar PV in supporting network infrastructure does exist, and have recommended that the Federal regulators should overhaul their guidelines to better take this into account.
Geelong”s fans would be proud of such a beautifully executed handball.
The only good news (and fair cop to VCEC) is they haven’t left it till the eleventh hour; the solar industry and consumers do have time to get in while it lasts.