NSW generous gross FiT policy takes a hit

Facebook
Twitter
LinkedIn
Reddit
Email

After the initial excitement surrounding the New South Wales Solar Bonus Scheme, which gave the state the most generous feed-in tariff in the country, Energy Matters has reported that a certain amount of criticism has arisen. The scheme was officially launched on the January 1, 2010, bringing NSW residents a gross FiT payment of AUS$0.60/kWh (€0.368711) for all energy generated.

One of the main reasons this scheme was labeled as so generous was not just the AUS$0.60/kWh price tag, but also the coupling with the Federal Government Solar Credits rebate. These two elements combined make for an almost certain return on investment (ROI) within the seven-year lifetime of the FiT program. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The country’s Energy Minister, John Robertson, backs this scheme with predictions of 33,000 new solar panel installations in the region during the seven-year program. If achieved, this total will be more than any other state or territory to date.
  
However, some have criticized this scheme, looking at it from the perspective of those who choose not to opt in for solar power. These critics state that the cost on those who do not enter into the scheme in order to subsidize those who do will be unfair. 
  
Minister Robertson disagrees with this, “Our independent economic modeling shows the cost to the average household could be as little as 48 cents a bill and certainly no more than a dollar ninety a quarter.”
  
Another growing concern is the fact that although the scheme has now been officially launched, most electricity generators in the state are not ready for the FiT commitment, and may not be until mid-2010. This will put great pressure on those companies who are equipped.

The other, and perhaps more pressing apprehension surrounding this scheme is that it may well fall foul of its own popularity. As seen in other countries, such as Spain, a small cap on the system (NSW 50MW) can produce an initial rush for installations in the first year of the program. This will mean that the program is filled up very quickly, so some gain the full benefits of the FiT, while some fail to even join the program.
 
At present, the NSW solar bonus scheme is scheduled for review in 2012, yet this will happen sooner if the cap is reached. 

Read Next

Premium
October 10, 2025
Gaëtan Masson of IEA PVPS warns of overcapacity, collapsing prices and slipping module quality in the new Trends in PV Applications report.
October 10, 2025
The European solar module market has reached a “state of equilibrium” in recent weeks, with stable prices and regular demand.
October 10, 2025
US solar recycling firm OnePlanet has achieved the R2v3 certification from electronics sustainability non-profit SERI, which represents the “highest standards of traceability”.
October 10, 2025
NTPC Renewable Energy Limited has signed an MoU with the Government of Gujarat to develop 15GW renewable energy projects in Gujarat.
October 10, 2025
Australia's renewable energy sector recorded its slowest month of the year for additions in September, with 5.8GW of new projects added to development pipelines, according to data from Rystad Energy.
October 9, 2025
The Australian government has announced the results of the fourth Capacity Investment Scheme (CIS) tender, with 6.6GW of renewables awarded long-term contracts.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK