[Greens-Media]
Thursday 14th August, 2008

The Great PV Solar Rip-off


Greens MLC Mark Parnell has asked the Essential Services Commission to
investigate how much electricity companies are paying householders for
the electricity they produce from their solar panels, after accusing
retailers of using the introduction of the solar feed-in premium laws to
make a windfall profit at taxpayer's expense.

Solar panel owners should be receiving 2 payments:

1. A payment for the electricity the households export to the grid
(paid for by the energy retailer)
2. A 44c/kilo watt hour premium (paid for by all domestic
electricity consumers)

Instead, some retailers, including Origin and AGL, stopped paying the
first amount when the feed-in scheme commenced on July 1 this year.

This will potentially deliver a windfall profit of about $350,000 (and
possibly much higher) to big energy companies - money that should be
going to households as an incentive to encourage more people to install
solar panels, not as a subsidy to big energy retailers.

"The feed-in incentive should be on top of, not replace, what the
electricity retailers were already paying. Otherwise, South Australian
electricity consumers are effectively paying almost half of the feed-in
law benefit directly to the big end of town, not to the householder with
the panels," said Mr Parnell.

"Electricity retailers were quite happy before July 1 to pay for the
power generated from household solar cells. Now, some electricity
retailers are using the feed-in laws as an excuse for the rest of the
community to pick up the tab.

"Retailers have to pay for the electricity they source from power
stations, why shouldn't they pay for the electricity produced from
people's roofs? They used to pay; now they don't pay a cent. That's
just not fair.

"They are collecting windfall profits while handballing responsibility
for climate change action to the rest of the community. If companies
like Origin and AGL don't start doing the right thing, I will introduce
legislation to fix up the scheme," Mr Parnell said.

For further comment contact Craig Wilkins on 0434 007 893


--- In ClimateChangeAction@..., "ghoppy9" <ghoppy9@...>
wrote:
>
> [Greens-Media] MARK PARNELL MLC: $350,000 Solar Rip-off
>
> Friday 25th July, 2008
>
> $350,000 Solar Rip-off
>
>
> Greens MLC Mark Parnell has accused electricity companies of using the
> introduction of the solar feed-in premium laws to make a windfall profit
> at taxpayers' expense, at the same time as ripping off households who
> produce power from the solar panels on their roof.
>
> Before July 1, when the scheme commenced, companies like Origin and AGL
> used to pay households for the electricity they produced from their
> solar panels. Since July 1 the retailers have chosen to replace what
> they were already paying to households rather than making the new
> 44c/kilo watt hour premium additional - which was the intention of the
> feed-in law scheme.
>
> This will potentially deliver a windfall profit of about $350,000 (and
> possibly much higher) to big energy companies - money that should be
> going to households as an incentive to encourage more people to install
> solar panels, not as a subsidy to big energy retailers.
>
> "Households doing the right thing by investing in solar cells are being
> dudded, and ordinary South Australians, who are paying extra to fund the
> feed-in scheme, have every right to be angry," Mr Parnell said.
>
> "The feed-in incentive should be on top of, not replace, what the
> electricity retailers were already paying. Otherwise, South Australian
> electricity consumers are effectively paying almost half of the feed-in
> law benefit directly to the big end of town, not to the householder with
> the panels.
>
> "Electricity retailers were quite happy before July 1 to pay for the
> power generated from household solar cells. Now, some electricity
> retailers are using the feed-in laws as an excuse for the rest of the
> community to pick up the tab. They used to pay, now they don't pay a
> cent. That's just not fair.
>
> "They are collecting windfall profits while handballing responsibility
> for climate change action to the rest of the community.
>
> "These big energy retailers must be rubbing their hands with glee. If
> they won't do the right thing and pay their fair share, they should be
> named and shamed," Mr Parnell said.
>
>
>
>
> For further comment contact Craig Wilkins on 0434 007 893
>