Solar from Tasmanian households deemed far more valuable than current prices

TREA says solar should be valued between AU$0.17-0.22/kWh as ooposed to the current 0.061kWh. Flickr: Brewbooks

Electricity fed back to the grid by residential solar systems in Tasmania is worth more than double the price it is currently receiving, according to new research.

The report from Tasmanian Renewable Energy Alliance (TREA) and campaign group Solar Citizens claimed this is holding back the solar industry.

They found that through generation, network and environmental benefits, solar should be valued between AU$0.17-0.22/kWh (US$0.12-0.16), as opposed to the current price that solar households are receiving, which stands at AU$0.061/kWh.

Jack Gilding, TREA executive officer, said: “At the same time, grid electricity costs 25 cents whilst Hydro Tasmania is generating electricity from gas and diesel, sometimes at a cost of between 17 and 30 cents.”

The new research follows a report released by Tasmania’s Economic Regulator, which denied the benefits of solar energy in boosting the state’s employment and energy security. The Regulator has recommended a 6.6 cents (+GST) feed-in tariff (FiT) but also acknowledged that it did not take into account network benefits as well as jobs, energy security and environmental benefits.

TREA cited a contrasting report from the Victorian Essential Services Commission, which argued that the price for exported solar in Victoria should be increased to account for environmental benefits and benefits brought to the grid.

TREA expects Tasmania’s regulator to soon publish the final electricity rates for 2016/17 with solar well below its true cost. The Alliance and Solar Citizens have called on the minister for energy, Matthew Groom, to step in and set a fair price for solar.

They also released the below infographic explaining what they deem as the true value of solar.

Fair price for solar in Tasmania. Credit: TREA

Read Next

August 16, 2022
Australia’s Northern Territory has struck a deal with French energy major Total Eren to develop a 1GW green hydrogen project in the city of Darwin that will be powered by 2GW of solar PV.
August 8, 2022
A introduction to Yingli Solar’s new YLM 3.0 Pro 415W module for both residential installations and commercial projects
August 5, 2022
Germany solar developer Wirsol Energy has received development approval for its Maryvale solar and energy storage project in New South Wales (NSW) by the NSW Department of Planning, Industry and Environment.
PV Tech Premium
August 4, 2022
PV Tech Premium unpicks South Africa's recently unveiled policy measures aimed at tackling the country's energy crisis and boosting renewables deployment.
August 3, 2022
Last week, the Australian federal government proposed legislation that will lock-in Australia’s commitment to achieve net zero by 2050 as well as providing greater oversight and accountability over progress on climate change in a sharp departure from the previous administration.
PV Tech Premium
July 29, 2022
Sun Cable, the developer of an installation that bids to transmit renewable electricity from Australia to Singapore, will use proven technologies that have been deployed at projects around the world.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event