





February 21st 2011
NOTHING WILL STOP PRICES SOARING
Electricity costs to double - the average annual houshold power bill is set to jump to $4000 over the next four years.
ELECTRICITY prices are set to almost double, regardless of the election campaign and the sale of power assets.
An Australian Industry Group study released today finds the annual bill for a typical Sydney household will climb from $1257 to $2012 between 2009-10 and 2012-13 if the carbon price is set at $26 per tonne. Even with no carbon price, the bill is set to climb to $1705.
"A range of factors points relentlessly upward, from massive network investment to movements in international markets to the increasing role mandated for higher-cost renewable energy," the group's chief executive, Heather Ridout, says in an introduction to the report. "The NSW privatisation debate is unlikely to change this much."
The study finds coal-fired generation will become more expensive whether or not Australia gets a carbon price as international prices for Australian coal climb. Paradoxically, weak international climate change policies could push Australian coal prices still higher.
Gas prices are also set to climb, with four large LNG export projects in Queensland set to drive eastern states prices towards world parity.
Peter Martin
February 2011
Solar Hot Water - Green schemes face axe over flood repair costs. Electric Water Heaters phasing out. In addition to the $1,000.00 Federal rebate there is $300.00 State rebate and STC's, and are available until the funding cap is reached. $700.00 per year savings on rising power prices.
LEVY'S HIDDEN COSTS
[CLICK FOR MORE] Emily Rice reporter.
The NSW Government has announced there will be no change to payments for customers already receiving or about to receive tariff payments under the Solar Bonus Scheme. This includes customers on the 60 cent or 20 cent tariff rate.
The Solar Bonus Scheme provides a feed-in tariff for eligible customers with small solar or wind generators that are connected to the grid. The Scheme commenced on 1 January 2010 and operates until 31 December 2016.
Customers wishing to connect a renewable energy generator to the grid without participating in the Solar Bonus Scheme are able to do so.
Customers are advised to regularly check this website for up to date information.
Background Information and useful links:
2011
2010
2008
Other

A review of the NSW Solar Bonus Scheme shows that it has been incredibly successful in meeting its aims of supporting and encouraging renewable energy generation.
The NSW Solar Bonus Scheme was introduced by way of legislation in 2009, and was supported by the NSW Government, the NSW Opposition and the Greens. It provides a gross feed-in-tariff of 60 cents a kilowatt/hour for the solar electricity generated.
The NSW Government has now completed a statutory review of the program – as required under the law when it reached 50 megawatts (MW) or 2012, whichever came first. NSW reached 52 MW by mid-2010.
The review shows that the take-up rate of the scheme has been faster than expected, and demonstrates that to date the scheme has created more than 100 MW of renewable energy capacity. More than 50,000 customers have joined the Scheme.
NSW Premier Kristina Keneally said the Solar Bonus Scheme has been an overwhelming success – exceeding all projections, but that the risk in continuing the scheme in its current form would be further rises in electricity prices.
“The changes we introduce today strike a better balance between keeping down electricity costs for consumers, while still supporting renewable energy generation,” Ms Keneally said.
The review of the scheme showed that a range of factors, including the strong Australian dollar and renewable energy policies in overseas markets, has seen prices of solar panels more than halve since the program first commenced. Since 2009, there has been a flood of cheaper panels from China and Spain.
“What we are doing today is slowing down the scheme in order to stop any further impact on electricity prices,” Ms Keneally said.
“Stopping the scheme at its current rate slashes anticipated costs of $2.5 billion by 2016.”
The review showed that in its current form, the scheme was increasing at around 1 MW a day, adding tariff payments of around $3 million. NSW had the most generous tariff rate in Australia, followed by the ACT at $0.457 cents a kWh.
If unchanged, independent modelling forecast installed capacity under the scheme to grow from around 25 MW to nearly 1,000 MW by the end of 2016 – taking payments to $4 billion.
Ms Keneally said: “It is now time to adjust the levers so that we can continue to create solar power, but not drive up electricity prices.”
Today, the NSW Energy Minister, Mr Paul Lynch will introduce the Electricity Supply Amendment (Solar Bonus Scheme) Bill 2010 to enact the changes. These were approved by State Cabinet today, but will require Opposition or Cross-bench support to pass the legislation.
The revamp includes:
The new program will be subject to a review on 1 July 2012 and at the end of the program (31 December 2016).
“There is strong support in the community for this program and that’s why we are continuing with it, but it’s about getting the balance right,” Ms Keneally said.
“This is about ensuring this hugely successful program can continue at a more sustainable rate.
In November 2009, the Shadow Treasurer, Mike Baird indicated his support:
“I reiterate that I support the measures outlined in the bill to boost current and future use of solar energy in New South Wales, but it is a very small start… The Government's legislation does not go far enough.”
Source: Mike Baird, NSW Legislative Assembly Hansard, Thursday 26 November 2009.
Last week, NSW Greens MLC Dr John Kaye reaffirmed his support for a revised program:
“It is highly possible that the scheme was either overly generous at the time at which we passed it or events since then have made the scheme now overly generous... When I say that, I do not seek to apportion blame to anyone. I was one of those who voted enthusiastically for the legislation; the Greens supported the legislation.”
Source: Dr John Kaye, NSW Legislative Council Hansard, Wednesday 20 October 2010).
For a copy of the Review Report or for more information about the changes to the Solar Bonus Scheme visit www.industry.nsw.gov.au/energy.

The NSW Government has announced some changes* for new customers of the Solar Bonus Scheme – transitional arrangements now apply (see below).
For all eligible systems purchased or leased after 27 October 2010, a new “gross” tariff rate of 20 cents per kilowatt hour will apply.
Customers who have connected systems by 27 October 2010 will not be affected.
Customers that have purchased or leased systems by 27 October 2010 can still apply to connect to the previous 60 cent gross tariff – (see below).
These changes do not apply to customers already connected.
www.industry.nsw.gov.au/energy
* subject to passage of legislation
Minister for Industrial Relations Minister for Commerce Minister for Energy Minister for Public Sector Reform Minister for Aboriginal Affairs The Hon. Paul Lynch MP
24 August 2010 Review for Solar Bonus Scheme The Solar Bonus Scheme has reached its first milestone – a capacity of 50 megawatts – triggering a review of its performance, Minister for Energy Paul Lynch said today.
As part of the legislation, a review of the Scheme must be undertaken as soon as possible to identify how it has performed against its original objectives.
Mr Lynch said the Solar Bonus Scheme was established in January to encourage renewable energy, build green jobs and promote renewable energy technology.
He said there had been a rapid uptake of the NSW Scheme with about 30,000 households now being paid to feed renewable energy into the electricity grid.
“This is the right time to evaluate the Scheme against its objectives and identify how it can continue meeting the community’s needs,” Mr Lynch said.
Public submissions will be received before 30 September, with the review to be tabled in Parliament towards the end of the next session of Parliament.
Mr Lynch said the review by NSW Industry and Investment would look at a range of issues relevant to the Scheme’s objectives.
Under the legislation, a further review must be undertaken by the Auditor-General early next year.
Mr Lynch said the important terms of the Scheme, such as its length and the tariff rate, were locked into legislation.
“If any changes are to be proposed, the legislation would need to be amended and we are on the record stating that any changes would not be applied retrospectively,” Mr Lynch said.
“That means no customers who have already entered the Scheme will be affected by the review,” he said.
Submissions can be emailed to solarbonus.review@industry.nsw.gov.au or posted to Solar Bonus Review, Industry and Investment NSW, Level 17, 227 Elizabeth Street, Sydney, NSW, 2000 by close of business 30 September, 2010.
A key long-term finding from these analyses is that 20-25% of global electricity production could be from solar electricity by 2050.
In a response to the recent Federal Budget announcements, Opposition Leader Tony Abbott had little to say yesterday about renewable energy.
Mr. Abbott said the Coalition would not proceed with the budget increase to the Renewable Energy Future Fund and will cut government advertising by 25 per cent. These savings he said will pay for the Coalition's direct action on climate change policy.
Under the Coalition's "Solar Sunrise" element of its Direct Action policy, part of its Emissions Reduction Fund, it would provide a $1,000 rebate for either solar panels or solar hot water systems on top of current solar rebates, capped at 100,000 rebates per year.
The goal of the incentive would be to create one million additional home solar power systems by 2020 and provide an additional CO2 emissions reduction of 2.4 - 3 million tonnes a year by 2020.
Under the ERF, the Coalition would also allocate $100 million to a Solar Towns and Solar Schools Initiative which will provide grants for towns, non-capital cities and schools to access direct solar energy and export clean electricity to the mains power grid. Additionally, $50 million would be provided to a Geothermal and Tidal Towns Initiative.
While scant on information specifically relating to renewable energy in his speech yesterday, Mr. Abbott said next Wednesday at the National Press Club, Shadow Treasurer Joe Hockey will announce further measures to reduce spending and to increase productivity; including a detailed response to the new spending and new savings proposals in the recent budget.
On 19 February 2010 the Government announced that a new household Renewable Energy Bonus Scheme will assist households to save money on power bills and reduce their carbon emission.
This new Scheme will replace the Home Insulation Program and the Solar Hot Water Rebate Program both of which are discontinued as of close of business today 19 February 2010.
From 20 February 2010, the rebate on solar hot water systems is reduced from $1,600 to $1,000 and the rebate on heat pump systems is reduced from $1,000 to $600.
Transitional arrangements have been put in place for people who paid for or ordered their hot water systems prior to 20 February 2010.
Eligible solar or heat pump hot water systems purchased or installed prior 20 February 2010 may be eligible for a $1,600 rebate for solar hot water or $1,000 for heat pumps, if proof of purchase or installation prior 20 February 2010 is included with the application.
Applicants who ordered or made partial payment for their solar or heat pump hot water systems but had not had their system installed prior to 20 February 2010, must include written evidence of their order with their rebate application. A receipt for a deposit or a copy of their supplier’s order form is required. A quote is not sufficient evidence of an order.
In all cases final decisions regarding rebate eligibility will be made by the Government.
Arrangements after 20 March 2010
IMPORTANT: All applications received from 20 March 2010 will be assessed for $1,000 for solar hot water and $600 for heat pump hot water systems, regardless of installation date.
Program guidelines for the Renewable Energy Bonus Scheme will be available shortly.
Further information is available on phone 1800 808 571.
(2009)
A standard residential electric hot water system produces around four tonnes of greenhouse gases each year. That’s 2.5 times more greenhouse gases than other more efficient technologies and the equivalent of running an average sized car for a year. To address this issue the Federal Government has announced that from 2010 it will make it mandatory to install.
To help the 50 per cent of existing Australian households that have an electric hot water system to reduce their electricity bills and Australia’s greenhouse emissions, the Australian Government has committed to:
Working with State and Territory Governments to phase-out greenhouse intensive hot water systems commencing in 2010, and Offering a rebate of up to $1,600 for eligible households to install solar hot water or heat pump systems.
Federal Budget includes $4.3 billion for improving the Energy Efficiency of Australian Homes
(12 May 2009)
More than three million Australian households are set to benefit from the largest energy efficiency rollout Australia has ever seen.
The $4.0 billion Energy Efficient Homes Package will install ceiling insulation in 2.9 million homes and help more than 300,000 additional households install a solar hot water system.