NSW generous gross FiT policy takes a hit

January 5, 2010
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 17, 2025
According to Ronak Maheshwari of CRC-IB, there has been a struggle for US renewable power projects to secure necessary equity .
October 17, 2025
Norwegian renewable energy firm Scatec has signed lease agreements for 64MW of solar PV and 10MWh of energy storage capacity in Liberia and Sierra Leone.
October 17, 2025
A group of over 20 US states are suing the Trump administration for the cancellation of the US$7 billion Solar For All Scheme.
October 16, 2025
Masdar and Turkey have entered the final stage of US$1 billion agreement to develop the 1.1GW plant in Bor, Niğde Province, central Turkey.
October 16, 2025
T1 Energy and Nextracker have agreed to use the latter’s steel module frames at the former’s new 5GW module manufacturing facility in Dallas.
October 16, 2025
US utility-scale solar additions grew by 56% in 2024, reaching 30GW from 2023’s 19GW and representing over 54% of all new electricity generation capacity added in the country last year.

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