Hunt attacks rooftop solar “cross-subsidy” from neighbours

The prospects of a negotiated outcome for the renewable energy target look increasingly dim, with Environment Minister Greg Hunt attacking rooftop solar as a “cross subsidy” from one neighbour without solar to another with solar.

In an interview on ABC Radio in Brisbane, Hunt echoed the complaints of many fossil fuel generators, particularly the government-owned coal fired generators in Queensland, when we said rooftop solar was inheritantly unfair.

“If your neighbour is putting on solar panels and you’re not, you’re bearing their cost through higher electricity prices,” Hunt told the program.

“If you’re putting on solar panels and your neighbour’s not, your neighbour is bearing the costs. It is a cross-subsidy and I think we need to be honest about that.”

solar byron

Actually, that’s not what most studies find. It’s true if only the costs are counted and not the benefits. The RET Review’s own modeling shows that the benefits of rooftop solar – delivered through falling wholesale prices – will offset those costs.

The REC Agents Association has found the same. In South Australia, the network operator has said that rooftop solar has delivered benefits to the grid, in providing stability and delaying and reducing the peak. The cross-subsidy for air conditioning is huge – more than $150 per year per household – but is never mentioned by politicians.

“5 independent reviews, including the government’s own RET review modelling done by ACIL Allen showed in the medium to long-term renewables lower electricity prices for all electricity consumers,” said John Grimes, head of the Australian Solar Council.

“By installing solar you are helping to push your neighbour’s electricity bills down in the medium to long term.”

The Abbott government has said it wants to negotiate a “bipartisan” position with the Labor Party to resolve the policy impasse on the RET.

The RET Review panel has recommended dramatic changes to the large-scale and the small-scale target, which includes rooftop solar.

However, Labor has said it will not entertain changes to the SRES and has been playing an active role in the Save Solar campaign that has targeted marginal Coalition seats. No Coalition representative has spoken at these meetings, and it is thought that some back-bench MPs are growing worried about the traction of the campaign.

One suggestion put forward as a compromise agreement is to retain the SRES as is and allow the 41,000GWh large-scale target to be pushed out to 2022, rather than 2020.

This was canvassed by Climate Change Authority chairman Bernie Fraser last week, and considered by Labor.

However, Hunt said on Monday the starting point for the Abbott government was a “20 per cent” target, which would involve slashing it to around 26,000GWh. The industry says the impact would be disastrous.

“We’re looking at a balanced, sensible middle-path and our starting point is the long-standing bipartisan commitment to twenty per cent,” he said.

The long-standing bi-partisan commitment was to 41,000GWh. The legislation makes that much clear. On percentages, it noted this would deliver “at least” 20 per cent. Which is where we are heading.  The Coalition explicitly voted for the RET in 2010, when informed in the second reading speech that the RET would deliver at least 22 per cent of renewables.

Independent modelling released by the Government today shows the changes are expected to deliver more renewable energy than the original 20 per cent target, reaching around 22 per cent by 2020, which will help transform the electricity sector and support investment in both large and small-scale renewable energy projects. Further, the enhanced RET is expected to drive up to $19 billion in total investment in large-scale renewable energy generation in the period to 2030. (Minister Combet, Second Reading Speech, June 2010)

This is not, as Hunt, says (and again today) an “unintended element in the legislation” – the Coalition voted for it!

“If they were serious about supporting solar and other renewables, Prime Minister Abbott would announce today that the RET will be retained in its existing form,” Grimes said. “He will not, so expect to hear more like this from Minister Hunt and other senior government figures.”

Comments

22 responses to “Hunt attacks rooftop solar “cross-subsidy” from neighbours”

  1. Robert Johnston Avatar
    Robert Johnston

    Its good to see Greg Hunt has put political ambition over personal integrity. Consistency in politics is very important.

  2. Cheryl T Avatar
    Cheryl T

    Is Hunt for real ?????? Has he conveniently had a “seniors moment” and forgotten the amount of $$$$$$ the home owner has invested in their generation into the system ????
    I am guessing Hunt has a brain disorder when his synapses are shorting out his neurons…..

    1. john Avatar
      john

      Cheryl T its simple follow the company line is the reason ok read on.
      In fact the result of people putting solar on roof has been this in rounded figures it has cost consumers about 5 c a kwh it has saved about 5.4 c a kwh so the net outcome is the people who put solar on are subsiding the neighbours let alone the fact it cost them an arm and a leg to do it
      The outlook is for further subsidy to the industry because of the saving that are inherent in the output by the Solar Systems.

  3. Beat Odermatt Avatar
    Beat Odermatt

    Environment Minister Greg Hunt attacking rooftop solar as a “cross subsidy”
    from one neighbour without solar to another with solar sounds like if
    he is a member of the ultra left Labor or the Greens. I have never
    heard Greg Hunt attacking “cross subsidy” and or shedding
    crocodile tears over social injustices. Will Greg Hunt promote an
    inheritance tax to lower the income tax of working people? Will Greg
    Hunt promote an asset tax like it is common in other countries?

    I just find it funny that he is picking rooftop solar as the biggest
    issue of social injustice in this country. Has anybody told him that
    we need conserve resources for future generations and that solar and
    wind can preserve these resources cheaply without causing pollution.
    Is he aware that rooftop solar has reduced the wholesale price of
    electricity during summer peak heat periods and enabled power
    companies saving Billions of Dollars in CAPEX. The RET MUST be
    preserved or a lot’s of supporters of the current Government are
    going to pissed off!

    1. john Avatar
      john

      he has no idea is ill informed or ill perhaps

  4. Pedro Avatar
    Pedro

    What gets me is that Greg Hunt thinks the general public believes his non sense. So a grid solar PV owner who gets a $0.06-0.08/unit FIT and the energy retailer who reads a meter and sends out a bill to the next door neighbour who does not have solar and buys that same power at around $0.25/unit at 2-300% profit. I would say it is the other way round, the PV owner subsidizing the energy retailer.

  5. Diego Matter Avatar
    Diego Matter

    Now we know for sure that the fight to keep the RET is not over.
    It’s time to turn up the temperature.

    Will you join thousands around Australia
    ———————————————————————
    WHAT National Rally for Renewables

    WHEN NOON ON FRIDAY September 26?
    WHERE http://rallyforrenewables.com.au/locations
    ———————————————————————

    Cabinet ministers are MPs too – and it’s time they understand the depth
    of feeling in their local communities. Before they make their decision
    on the Target they need to know that solar workers, business owners,
    solar owners and supporters everywhere want the Renewable Energy Target
    kept in full, with no cuts.

    RSVP today on our new Rally for Renewables website
    to join us in coming together for this national event that will take
    the message to save solar and renewables right to our politicians.

    The Australian Solar Council is working with the Solar Citizens, Clean
    Energy Council, and Solar Energy Industries Association and many other
    organisations and businesses who want to see the future of solar and
    renewable energy protected.

    We’ve identified the key Cabinet ministers who will discuss the future
    of the Target in the coming days, so we need to take our message to
    protect solar and renewables where they will pay attention – at their
    electorate offices.

    The Rally for Renewables will be held in major centres
    across Australia, with flagship events at key Cabinet ministers’
    electorate offices in each state – see the full list here.

    Will you attend the Rally for Renewables at your local MP’s
    office on Friday September 26 in a national show of strength for
    renewables and the Renewable Energy Target?

    The Renewable Energy Target has been a hugely successful bipartisan
    policy since it was introduced by the Howard government in 2001.

    For workers, any cut to the Target will mean thousands of jobs are lost,
    and at least another 18,000 jobs won’t be created to 2020. Hundreds of
    businesses, large and small, will be forced to close their doors.

    It will be harder for consumers to go solar and take control of their
    power bills, with installation costs to skyrocket by 30-50% if the
    Target is cut. Is this what you want for Australia?

    This is our chance to ensure a strong future for solar and renewables.
    By coming together on September 26, we can show our politicians the real
    impact on jobs, small and large businesses and families that any cuts
    to the Target will have in local communities across Australia.

    Looking forward to seeing you at noon on Friday, September 26.

    Yours for a strong solar/renewable/clean energy future,

    PS. The National Rally for Renewables will be unlike
    anything our politicians have ever seen and will show the government
    that any cuts to the Renewable Energy Target will be treacherous to
    thousands of renewables voters in key electorates.

    Come to the Rally on
    Friday September 26 and invite your friends, family and colleagues –
    it’s the most important thing we can do now to save the Target – so RSVP
    today!

    http://rallyforrenewables.com.au/locations

  6. Kevin O'Dea Avatar
    Kevin O’Dea

    Greg Hunt, Minister Against The Environment, is simply enforcing the agenda of the Greenhouse Mafia, Big Coal/Oil’s lobby group which dictates policy for Australia at both federal and state levels. Personal integrity does not rate at all in this game. Many voters will be seriously angered at this undermining of their investments.

  7. Liz Connor Avatar
    Liz Connor

    Pleased to see the cross-subsidy of air-conditioner owners by all the rest of us being referred to here. I’ve been banging on about the inequity of that for years now, especially when it would seem to be a no-brainer to require air-conditioners to have a solar panel or two come as part of the package. If your roof gets enough sun to make it unbearable inside on a hot afternoon and evening even with the windows opened, then it also gets enough sun to make a solar panel effective. That would seem much fairer than making everyone pay for the infra-structure to cover the spike on those days.

  8. Chris Fraser Avatar
    Chris Fraser

    It appears Hunty is wearing somebody else’s dental prosthesis today. He really meant to say “If your installing air conditioning and your neighbour is not, your neighbour is bearing the cost and you’re not. I think it’s important to be up front about these things.”

    1. john Avatar
      john

      very true it has cost a heap to build a network to supply a demand that did not happen however because it was built with a 10% return we all have to pay it in our bills.
      The bit about Air Conditioners is very true a 8kw demand is rather huge when you multiply it by a suburb the end result is see above huge network build.

  9. JeffJL Avatar
    JeffJL

    Wait. I have changed all my light bulbs to fluros and LEDs reducing my electricity use. I never realised that by doing so would result in my neighbours subsidising me for my reduced electricity use. Back in a minute, just need to turn them all on as well as the oven and fans.

    1. Ronald Brakels Avatar
      Ronald Brakels

      I know a pensioner with a 1.5 kilowatt solar system who turns her refrigerator off at night to save on grid electricity. She’s stealing from us! Let’s get her!

    2. john Avatar
      john

      I so get the joke and its is true if you have a very small KVA demand you are actually paying your neighbours who dont

  10. Cheryl Avatar
    Cheryl

    What a load of crock Greg Hunt! I object to air conditioner users using excessive power and helping to cause global warming. All people with air conditioners should have roof top solar so they don’t over burden the electricity grid!

    1. john Avatar
      john

      just wait to they get KVA power charging.
      HUH what is that it means what is your Kilowatt Volt Amp demand it means they will be charged heaps

  11. Rob G Avatar
    Rob G

    The solution to Hunt’s so called ‘problem’ is simple. If you don’t have solar, get it! More and more Australians are doing just that. In fact it’s getting to the point where so many of us already have them that this is more about a war between ‘us’ and ‘them’ (Hunt and his coal buddies). It’s clear that every time he opens his mouth the public get a better understanding whose side he is on – and its not their side.

  12. patb2009 Avatar
    patb2009

    conservatives making arguments about social good and equity is kind of amusing

  13. Jeremy Mauli Avatar
    Jeremy Mauli

    Lucky for Australian Businesses there is a solution, Go Energy who is Australia’s Leading renewable energy provider is offering FREE of charge NO OBLIGATION agreements which protect your business from the federal govt. to abolish RETs , the agreement protects your intentions for future solar installations whether if its 5- 10 years from signing of the agreement, the abolishment of RETs could happen as early as tomorrow if you would like your business protected give me a call on 02 9492 2939 or send your business name ABN and your latest energy bill to [email protected] and I will see to it that your agreement to be protected is sent out, the sooner we have the completed documents back the quicker you can secure the protection your business needs. Thanks Guys….

    1. john Avatar
      john

      Jeremy you are abusing your privilege this is not a place to put company advertising I have no alternative but report you if this is possible

      1. john Avatar
        john

        I admire the admiration of this site it is excellent. very well done this is brilliant all I can say is people this is a Class A site

  14. Fambo Avatar
    Fambo

    The heart of the issue is that as more people put solar panels on their roofs it undermines the value of the huge energy generating assets of power companies such as dams and power stations. So they are trying to stop solar growing, as is happening in the United States where power companies are using their influence to put through legislation to put huge taxes on people who install solar panels. Al Gore has an excellent article on the exponential growth of solar panels in the August edition of Rolling Stone magazine.

Get up to 3 quotes from pre-vetted solar (and battery) installers.