Alternative Energy Metering

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Alternative Energy Metering (Proof)
About this ItemSpeakers - Torbay Mr Richard Business - Private Members Statements, PRIV

ALTERNATIVE ENERGY METERING
Page: 61

Mr RICHARD TORBAY (Northern Tablelands—Speaker) [6.13 p.m.]: I bring to the attention of the House a shortcoming in the new New South Wales Solar Bonus Scheme that could deter many people, particularly farmers, from taking up alternative energy technology. Although 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 that I will outline. I was the first to sign up to the New England Solar Systems [NESS] project to have both solar panels and a solar hot water system. Fortunately for me as it turned out, 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 that my solar panels produce. Others who signed up earlier and already have their solar systems installed are not quite so fortunate.

Until the official launch in November last year, the New South Wales Government communicated to the industry that the scheme would use a net feed-in tariff system. That meant that householders, farmers and businesses would be paid only for the energy their systems generated in excess of what they consumed. Residents and farmers who installed grid-connected solar power, or other renewable energy such as wind, used net energy meters and wiring. But at the launch of the scheme in November last year the system was unexpectedly changed from a net to a gross feed-in tariff. Most commentators saw this as a positive step to encourage further adoption of alternative energy options.

In the last few weeks of 2009 alone, farmers and other businesses in my region took up some 120 new solar energy systems of 140 kilowatts. That equalled the total taken up in the previous year under the now completed Australian Government Solar Homes and Communities Program. However, the problem with the new New South Wales scheme is that from July the feed-in tariff incentive is going to be paid for only renewable energy systems that have gross, not net, energy meters and wiring. This requires early adopters to get rid of their net meters and install gross meters to benefit from the feed-in tariff. 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 hundred dollars. For most people this cost is probably acceptable in exchange for the greater advantages of 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. At least 150 farmers in my region, who invested $11.2 million to purchase 120 kilowatts to 140 kilowatts of renewable energy systems last year believing they could use the net meters, are now at risk. One farmer who purchased a 10-kilowatt solar power system to be mounted on a farm shed 400 metres 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 400 metres of high-performance electrical cable. Alternatively, the cost of locating the system as a ground mount near the meter box adds some $10,000 to $15,000 to the cost of in-ground works and racking systems.

A fair solution is to alter the New South Wales scheme and make it more flexible so that alternative energy consumers can have the option of installing either net or gross meters according to their situation. There seems to be no technical, environmental, economic, social or political reason to exclude net renewable energy systems. In fact, most commentators believe a net scheme acts as an incentive for householders to reduce their energy consumption as they are paid only for the energy they generate beyond what they use. Today I call on the Minister to introduce flexibility into the scheme to include both net and gross meters. That 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.