Solar feed-in tariffs benefit everyone

18th Jan 2012

The benefits of solar energy have been highlighted by an Australian climate change think tank.

According to executive director of not-for-profit group Beyond Zero Emissions (BZE) Matthew Wright, electricity can be provided at a considerably cheaper price through solar rather than traditional sources.

"It may appear counter-intuitive, but getting millions of solar panels onto rooftops saves more money than it costs," Mr Wright explained in a post on the BZE website yesterday (January 17).

"Feed-in tariffs enacted by state governments have enabled ordinary Australians using their savings to build a solar power station at home benefiting the community."

Mr Wright believes that households utilising the feed-in tariff in New South Wales are given a slightly higher than average retail rate for the electricity they are generating by feeding it back on to the grid.

NSW residents utilising a 10 kilowatt system are able to avoid the fluctuating daily prices of electricity and receive a consistent rate of between 44 and 60 cents per kilowatt hour, as well as benefiting from what Mr Wright describes as the "merit order effect".

According to a recent paper by the University of Melbourne's Energy Research Institute, the real benefits of a rooftop solar panel system can be seen in the warmer months of the year, when the use of air-conditioners is at its highest.

"Eighty-five per cent of the time, during peak demand periods when the highest prices occur in the electricity market, rooftop solar is there to dampen, reduce and keep a lid on extreme prices," Mr Wright added.

The profitable news for solar households comes as the largest electricity generator in Australia has announced a new cost-cutting measure.

According to the Sydney Morning Herald, Macquarie Generation – which is owned by the NSW government – has decided to buy electricity from the wholesale market instead of producing its own.

The corporation presented its annual statement of corporate intent to NSW parliament, in which it predicts that rising coal prices – combined with the introduction of the federal government's carbon tax – will result in a significant decline in profits by 2014.

''As a result, Macquarie Generation might need to become a more active trader of the forward production … in order to reduce the margin squeeze resulting from lower prices and restricted avenues to market,'' it claimed.

Posted by Mike Peacock – Solar correspondent

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal
 To get your quotes, please enter your postcode: