Torbay calls for flexibility on feed in tariff on solar

Member for Northern Tablelands Richard Torbay has urged the government to act quickly to ensure farmers and householders who have already installed solar systems will not miss out on payment for the energy they produce after July when the system changes.
He told Parliament that last minute alterations to the feed in tariff system meant that from July 1 only those who installed new meters, at considerable cost, would receive the payment.
For most householders the charge to transfer from ‘net’ to ‘gross’ meters would be in the region of $200 - $300 dollars but for many farmers the impost would amount to tens of thousands of dollars, he said.
He called for a flexible policy to include both meters and allow users to decide which they could afford to adopt. The difference between the two feed in tariff systems is that the net meter yields a return only for extra energy generated after household or business use and the gross system pays a bonus for all the energy generated by the solar system.
“Through the unexpected change in government policy in November last year those who, in good faith, installed net meters will now receive no payment at all after July,” the MP said. “It is both unfair and unwise for the government to put barriers in the way of people wishing to make a positive contribution to the environment.”
Mr Torbay said the change would hit farmers the hardest. He said one farmer had been quoted $35,000 for electric cabling and trench digging to change his meter. “The solution is to make the policy more flexible and I urge the Minister to make the amendment without delay,” he said.
The MP said he had been the first to sign up for solar panels and a solar hot water system through the Farming the Sun initiative of the New England Sustainability Strategy (NESS) when it was rolled out last year. “Because of my work and other commitments there has been a delay in the installation, so I am one of the lucky ones who will automatically have a gross meter connected,” he said.
“Like many people in the community I am committed to doing what I can in the interests of the environment and I would like to think that government policy will not stand in the way all those who wish to make a contribution.

Richard Torbay,
Speaker, NSW Legislative Assembly,
Member for Northern Tablelands

Members Statement

Alternative energy metering problems

Today I want to bring to the attention of the House a flaw in the new NSW Solar Bonus Scheme which could deter many people, particularly farmers from taking up alternative technology. While the Scheme is mostly very positive, the final design is creating problems for many regional and rural people who want to do the right thing by the environment. Fortunately the situation can be addressed through some minor changes which I would like to outline today.

Let me say that was I the first to sign up with the New England Solar Systems (NESS) project to have both solar panels and a solar hot water system installed at my home. Fortunately, as it turned out for me, there have been some delays because of my other commitments and when my system is installed within the next week or so it will automatically be connected to a gross meter. That means I will be paid for all the energy my solar panels produce. Others who signed up earlier and already have their solar systems installed are not quite so fortunate.

Until late last year, the NSW Government indicated to the industry that the Scheme would use a 'net' feed in tariff system. That meant householders, farmers and businesses would be paid only for the energy their systems generated in excess of what they consumed. People who moved early to install solar systems, largely because of federal government incentives did so using net meters. Towards the end of last year some 120-140kW of new solar energy systems were taken up by farmers and other businesses in my region.

But at the launch last November the system was unexpectedly switched from a ‘net’ to a 'gross' feed in tariff. In practical terms it means that from July this year those who have already invested in systems with net meters will receive no financial return for the energy they generate unless they go to the considerable expense of installing gross meters. In situations where the renewable energy system is close to the meter box and there are no complex obstructions, the costs of conversion will be in the range of several hundreds of dollars. For most people this cost is probably acceptable in exchange for the greater advantages and financial returns from the gross scheme.

However, it is a different story for farmers and residents where there is a significant distance between the ideal location of the renewable energy systems and their meter boxes. In these situations the cost to install the wiring for a new gross meter can be very substantial and potentially make the entire endeavour uneconomic. Farmers in my region who committed $1- 1.2 million to purchase 120-140kW of renewable energy systems late last year believing they could use the net meters are now at risk.

One farmer who purchased a 10kW solar power system to be mounted on a farm shed 400m from the meter box has been quoted an extra $37,000 to install a gross meter and wiring. This cost is primarily for digging trenches and laying 400m of high performance electrical cable. Alternatively, the cost of locating the system as a 'ground-mount' near to the meter box adds some $10-$15,000 of cost in ground works and racking systems.

The inflexibility of the Scheme to only allow gross meters will remain a significant barrier for any new installations where there significant distances or other complexities between the meter box and the location of the solar system. A fair solution is to alter the NSW Scheme to allow alternative energy consumers the option of installing either net or gross meters according to their situations. There seems no reason, technical, environmental, economic, social or political, to exclude 'net' renewable energy systems. In fact, most commentators believe a 'net' scheme brings greater environmental benefits since it acts as an incentive for householders and farmers to reduce their energy consumption as they are paid only for the energy they generate beyond what they use.

Today I am calling on the Minister to introduce this flexibility into the Scheme. It would give farmers, business owners and householders a choice of which feed in tariff system they want to join. It would also restore some equity for those who have already installed net meters in good faith and encourage more people to adopt solar and other alternative energy options.