Important news for ACT customers only: Earlier this month a strategical recommendation was made by the Independent Competition and Regulatory Commission (ICRC in Canberra) that would directly affect the investment appetite for people who want to install solar energy panels on their roofs.
It all started late last year when The Minister for Energy made a reference to the ICRC to assist with determining the premium rate for Renewable Energy Generation in the ACT. The commission was asked to develop a model for determining the premium rate for 2010-2011 and to help create a mechanism for annual adjustments, of the rates, for the years to come.
After approximately four months of debate and independent reports and complaints their final report concludes and instructs the Minister of Energy to adhere to the following advice:
– A new rate of 45.7 cents/kWh be retained for two years subject to unforeseen changes in the Commonwealth RET scheme
– The model and adjustment mechanism for reviewing the premium rate should be every two years (e.g. 2012-13 to 2014-15)
Source: Independent competition and regulatory commission, Final Report Electricity Feed-in Renewable Energy Premium: Determination of Premium Rate Report 4 of 2010 March 2010
The new rate of 45.7 cents/kWh went into effect on 1 July 2010. The (http://www.legislation.act.gov.au/di/2010-42/default.asp) legislative instrument which set the rate expires on 30 June 2011. However, if the Minister of Environment is committed to the two year review period, this rate will likely be extended through June 2012. This rate is applicable for systems up to 30kW capacity.
Written by Prateek Chourdia
MEngSc – Photovoltaics and Solar Energy, UNSW
Solar Energy Analyst
© 2010 Solar Choice Pty Ltd