The Energy Networks Association (ENA) welcomes the early phase out of the Solar Credit Multiplier
announced today by the Commonwealth.
“Governments across Australia are now recognising that the average electricity customer is paying a high
price to fund subsidies for domestic solar systems, said ENA CEO Malcolm Roberts.
“The rapid growth of household solar systems has contributed to higher network charges. In many cases,
for example, governments require the cost of feed-in tariffs to be passed through to customers via
network charges.
“There have been many claims made about ‘gold-plating’ of networks but very little has been said about
this solar panel effect which is pushing up electricity prices”.
“In Queensland, the pass-through of feed-in tariff payments is expected to push up network prices by
10% for residential customers in 2013-14. Energex will have to recover $78.5 million from their customers
in south-east Queensland to cover feed-in tariff payments. The State government estimates that
Queenslanders are paying $54 more on their power bills to cover these payments.
“These costs are rising sharply with the growth in solar installations”.
“There is a less obvious cost to most customers from the growth in solar panels. Households with solar
systems are paying very little or nothing towards the costs of network infrastructure.
“Most households with solar systems benefit from feed-in tariffs set well above the market price for
electricity. In net terms, these households pay little or nothing for the energy they use. They rely on the
electricity network to provide and export power but contribute very little to the maintenance of this
essential infrastructure.
“Unfortunately, as demonstrated in projects such as the Perth Solar Cities trial, domestic solar systems do
not reduce electricity demand at peak times. As the growth of peak demand is a major factor in higher
network costs, households with solar panels are contributing to the upward pressure on electricity prices
but are not contributing to the associated costs of network augmentation.
“Bringing forward the phase out of the Solar Credit Multiplier is a modest step to rebalance support for
household solar systems. Solar power has a significant role to play in the mix of our energy system but it
needs to be supported in ways which are equitable to all electricity customers.