NSW Pollies Back Down On Daft Retrospective Solar Feed In Tariff Legislation

By Rich Bowden

The NSW Government’s decision to reinstate the solar fund feed-in tariff to 60c per kilowatt hour has come in reaction to bitter criticism, not just from solar investors and the solar industry but all sides of politics. Opponents of the decision to reduce the compensation to 40c have emerged, not just in the wider community of NSW, but also within the ranks of the NSW Liberal party.

Over the last few weeks, SolarQuotes.com.au has been following the outcry over the original decision. As described in a recent article, influential backbencher and former environment spokesperson Catherine Cusack, described the retrospective nature of the backflip as un-Liberal and a “betrayal” of solar customers.

In the face of this strident opposition, Premier Barry O’Farrell and his embattled Energy Minister Chris Hartcher, have decided discretion is the better part of valour and announced this week they would reinstate the scheme to its original bonus amount.

However will this backflip return certainty to the solar industry? Or will solar players simply refuse to trust a state government that seems bound to find ways to cut costs in renewable energy schemes where it can?

Mr O’Farrell certainly sounded contrite in his media release of June 7, although appeared to  direct his remorse more toward expected opposition to the bill from the Upper House than over righting a genuine wrong to solar consumers.

“I have listened to community and backbench concerns about the retrospective nature of the changes,” Mr O’Farrell said in a media statement released this week. “It had also become clear that the crossbenchers in the Upper House would not support the planned changes and they will not proceed.”

He appeared to make his underlying regard for the Solar Bonus Scheme clear when he continued:

“I wanted to do everything possible to reduce the cost to taxpayers of the Solar Bonus Scheme and keep a lid on electricity prices. However, I am a realist and there is no point putting up legislation to the Upper House which is going to be rejected.”

Mr O’Farrell claimed though, that he had “… listened to the concerns of those who entered the scheme in good faith and this decision should give them the certainty they need.”

The decision to reinstate the full bonus amount has delighted John Grimes, chief executive of the Australian Solar Energy Society (AuSES). The organisation, along with the Solar Energy Industries Association (SEIA) mobilised popular opposition to the changes to the solar bonus scheme and has now called for a “fair price for solar” as the next phase of its campaign.

“To make a strong solar future a reality in NSW it is now imperative that the NSW government puts in place a fair price for solar going forward,” said Mr Grimes.

Pointing to the current uncertainty surrounding the solar industry he added:

“The solar industry in NSW remains in crisis, with many solar companies already letting staff go and slashing costs. The government must urgently act to put an end to this uncertainty, or 8,000 solar jobs will be lost, and companies closed.”

The O’Farrell Government needs to work hard with solar business to restore the certainty in the industry. The complete mess surrounding the attempted changes to the solar feed-in tariff was the worst possible start for the new government, seeking (presumably) to establish a working relationship with the solar energy industry. However it is not too late. Mr Grimes said his organisation, and others in the solar power industry in NSW, would be prepared to work with the coalition to reintroduce fairness and certainty as the industry looks to move forward.

“We want to work collaboratively with the government to urgently finalise the details of a scheme that will at least pay people the same rate for their clean solar power as they pay for coal fired electricity from the grid,” said Mr Grimes.