PDC: Solar tariff working group

This Working Group (WG) was established by the Policy Development Committee (PDC) on 23 January 2013.

Working group report
This working group was tasked with developing policy to implement a national solar tariff scheme. The working group was chaired by Mark Gibbons and will present the following policy text to the March 6 PDC meeting.

Recommendation
As per the MAUT decision table for the Solar Tariff Policy Working Group, we recommend the institution of a national solar tariff scheme covering all sectors of the economy, with a payback period of under 20 years.

Preamble
Further action needs to be taken to prevent climate change, and this change needs to be implemented in ways that harness our natural advantages and increase our economic resilience. Australia has immense natural advantages as a source for solar energy, receiving more solar radiation than any other continent. However this potential is not being realized, and the International Energy Agency reports that Australia's share of the solar PV market fell from around 7 per cent in 1991 to 1 per cent in 2008.[1]

Global solar take-up has proven to be highly responsive to policy,[2] but Australia remains burdened with a patchwork of state schemes,[3] which fail to provide the advantages available through an unified nationwide approach.[4] Policies enacted in Germany and Spain have reduced energy prices and created a solar boom,[5] and Australia stands to benefit in the same way by adopting global best practice. To match the success of overseas schemes, solar tariffs need to be unified and provided to all sectors of the economy-not just households. Payback periods need to be guaranteed, and gross metering (which provides a guaranteed return on all energy generated) needs to be employed.[6] An effective solar tariff will offer a guaranteed and clear return to investors in solar energy, and the resulting growth of power generation within the community will reduce emissions, create skilled jobs, and reduce the community's exposure to power company decisions and energy price shocks.[7]

Policy text
The Pirate Party proposes the following measures to reduce carbon emissions and capitalize on Australia's potential as a source of renewable energy.

Institute a single National Feed-in Tariff.
 * A proposal will be placed before COAG to lift the burden of funding solar feed-in tariffs from the states and instead apply a uniform nationwide scheme.
 * Gross metering will replace net metering on solar installations.
 * A single compliance and regulation regime will apply to solar companies in place of the varying regimes currently imposed by state authorities.
 * Solar best practice recommendations from the Australian Solar Council will be adopted, including a stronger compliance regime, improved staff development and training, and a "trust mark" program to assist consumers in identifying reliable companies.
 * Tariffs will extend to all sectors—not just households.
 * Tariff rebates will be guaranteed for a period of at least 20 years and will be set to meet a 10-15 year payback period.
 * The initial tariff level will be fixed by an expert panel and will be expected to decline over time as solar technology becomes cheaper and more efficient.

Phase out existing subsidies to fossil fuel industries.
 * This phasing will occur as solar take-up reduces the need for older forms of energy.

[1] Access Economics, The Economics of Feed-in Tariffs for solar PV in Australia, Page 4 [2] Access Economics, The Economics of Feed-in Tariffs for solar PV in Australia, Page 8 [3] Energy Matters. "Feed-in tariff for grid-connected solar power systems" http://www.energymatters.com.au/government-rebates/feedintariff.php (Accessed 6 March 2013) [4] Gregg, Feed In Tariffs – The Devil Lies In The Details, 13 May 2011. http://www.shapingtomorrowsworld.org/greggfeedins.html (Accessed 20 February 2013). [5] Stern, Stern Review: The Economics of Climate Change, Page 367 [6] Hall, The U.S. Needs a Feed-in Tariff, 1 october 2010. http://www.power-eng.com/articles/print/volume-114/issue-10/departments/View-on-Renewables/the-us-needs-a-feed-in-tariff.html (Accessed 20 February 2013) [7] Renewables International "Merit order effect of PV in Germany" http://www.renewablesinternational.net/merit-order-effect-of-pv-in-germany/150/510/33011/ (Accessed 6 March 2013)

[| MAUT table link]

'''Got feedback or suggestions? Send us an email at policydev@pirateparty.org.au.'''

Meeting Schedule
This working group has concluded the drafting process and no further meetings are currently scheduled.