Expect more tariff cuts down under

June 28, 2011
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Yet more uncertainty overshadowed Australia’s solar industry at the end of last week as the South Australian Government discussed the future of the state’s feed-in tariff. Having originally planned to increase the incentive rate from 44c to 54c, plus a mandatory additional contribution from electricity retailers, the Government is now tipped to keep the tariff at 44c until the end of September for solar households entering the scheme.

Under the latest proposals, new connections under the program will receive 16c/kWh plus an electricity retailer contribution of 6c from October this year, generating a combined rate of 22c, which is roughly equivalent to current retail electricity costs.

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While this lower rate will be a devastating blow for some, it does mean that the scheme won’t end as expected at the end of September, reducing the risk of the boom and bust scenario.

After receiving findings from Essential Services Commission of South Australia (ESCOSA), South Australia’s Energy Minister said the Government would be proposing amendments to their Bill in light of concerns about the impact of their legislation on the PV industry.

Households joining the scheme before October will continue to receive 44c for the duration of their contracts. The new scheme will be open for two years.

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