Remove solar hot water from renewable energy target
By Ian Christesen
Half of all Renewable Energy Certificates generated come from solar hot water and not renewable energy such as photovoltaic panels.
The Federal Government’s chop and change approach to renewable energy policy is causing uncertainty and the stalling of cleaner energy projects.
Everyone knows that solar hot water is not a renewable energy source however Minister for Climate Change and Water, Penny Wong has included solar hot water and heat pumps as part of the Renewable Energy Target, claiming that Treasury modelling showed it would only amount to 5 per cent of the target. The modelling Senator Wong relied on got it very wrong with approximately 50 per cent of all Renewable Energy Certificates (RECs) generated coming from solar hot water and not renewable energy. The resultant flood of RECs has collapsed the price affecting the viability of renewable energy projects across the country.
Greens Senator Christine Milne has warned, “We have got 150 jobs on the line right now with Keppel Prince Engineering and we have got $20 billion worth of investment in commercial-scale renewable energy projects at risk. Dare I say that, if this were 150 workers in a coalmine or in a coal-fired power station or $20 billion worth of investment in coal at risk, there would be emergency meetings all over the place, but this is renewable energy.”
It is said that it can be good sometimes to be behind as you can learn from the mistakes and success of others. Not apparently when it comes to renewable energy policy.
Feed in tariffs (FiT) means that if you are generating green electricity and sending it back to the grid you are getting paid a higher price. There is a “net” feed in tariff where you only get paid for the excess you send back to the grid after your own household usage has been taken out. With a’gross” FiT one gets paid for what ever is generated.
Countries like Germany and France have grown their clean renewable industry by having long-term certainty around a national gross feed in tariff.
Farmers in Germany put solar panels in their paddocks and on their barns and make a good rate of return as they are guaranteed a price for 20 years. China, Japan and the UK are all introducing gross feed in tariffs to assist the transition to a low carbon economy.
The Federal Government have allowed feed in tariff arrangements to be handled by the States and the result is a total lack of consistency. Western Australia, Northern Territory and Tasmania have no feed in tariffs. Queensland and South Australia have net feed in tariffs of 44 cents per KwH, Victoria has a net of 60 cents, ACT has a gross FiT of 50 cents and next year New South Wales is to be congratulated for having the highest feed in at 6o cents gross per KwH.
What a crazy situation for such an important piece of policy to be handled in this way. The Federal Government has made the mess and now they need to fix it. Immediate action is required to remove solar hot water from the Renewable Energy Target. Take federal control of feed in tariffs and introduce a national gross feed in of say 60 cents a KwH.
It is about time that the coal industry was told to look after itself and the tax-payer subsidies withdrawn, and assistance went instead to the future of renewable energy.
Related articles:
- And the winner is … clean coal
- Green jobs are the key
- Smart water solutions needed after Traveston refusal
- People Advocating Green Energy
- A complex clock of acronyms
Leave a Response
Entries(RSS)