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

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

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

February 6, 2025
The deal was signed with the Energize programme, a renewable energy purchasing vehicle for pharmeceutical companies.
February 6, 2025
The levelised cost of electricity (LCOE) for a number of clean power industries will fall by between 2-11% year-on-year by the end of 2025.
February 6, 2025
Solar module prices in Europe have risen after months of decline, driven by price increases from Chinese manufacturers and a tight supply of popular modules in the European market.
Premium
February 6, 2025
Donald Trump's latest tariff threats will have only a minimal impact on PV manufacturing but could create future procurement headaches, write Jonathan Touriño Jacobo and Will Norman.
February 6, 2025
Exports of both PV cells and module from China in 2024 reached new highs, according to recently released customs data.
February 6, 2025
Samsung C&T Renewable Energy Australia has submitted a 250MW solar-plus-BESS site in New South Wales to the Australian government’s EPBC Act.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 19, 2025
Tokyo, Japan
Solar Media Events
March 11, 2025
Frankfurt, Germany