A fair and reasonable solar tariff… or fair reason to quit the grid?

The Queensland Competition Authority (QCA) is really making a name for themselves these days in suggesting tariff options for solar power systems that are completely out of step with the views of both the energy industry and the voting public.

First came the suggestion of changing to a gross feed-in tariff for Queensland solar power customers in September that was roundly rejected by all and sundry. In an attempt to later explain away the suggestion the authority said that they’d “discussed the option of gross metering in order to highlight that PV customers on a net metered tariff are able to avoid a disproportionate amount of network costs by minimising their reliance on grid-sourced electricity.”

It’s almost as if solar power customers are trying to minimise their reliance on the grid.

In the recently released QCA Draft Report “Estimating a Fair and Reasonable Solar Feed-in Tariff for Queensland” it was noted that, “The majority of submissions, including those from retailers, clean energy associations, PV associations, customer groups and the distributors strongly opposed a move to gross metering.”

After misreading industry sentiment for a gross feed-in tariff the QCA again found itself in hot water over their suggestion that a “more cost reflective (fixed and variable) network prices for PV customers could reduce the extent to which other customers must pay for the network costs PV customers avoid as a result of in-house PV power consumption.” In other words, a tariff levied against solar power customers just for the privilege of having a grid-connected solar power system.

After these “improved network charges” were reported in the Courier Mail and elsewhere, public reaction was swift with over 700 comments on the Courier Mail’s website. The public outcry was strong enough that the QLD energy minister Mark McArdle issued a statement the same day to say that “there will be no fixed charge of any sort on people using solar.”

In a Nine News TV interview I did on the same day, my comment was that this looked like a “tax” on solar customers. After promoting the uptake of solar technology for years it seems like we’re in the middle of a huge backlash from governments and energy industry incumbents around the country. However while the utilities, electricity generators and retailers have huge political clout, they’re now heavily outnumbered by voters with solar installed. And as we all know voters don’t like new taxes.”

But these aren’t the only problems with the QCA’s position on what constitutes “fair and reasonable”. Despite ample proof that the uptake of solar power around the country has been quite evenly spread across the full range of socio-economic classes, and in some cases higher in lower-income suburbs than in the wealthy suburbs, there’s still an undercurrent of bias to the QCA’s comments.

In the preamble of the draft report they wrote, “When those doing the paying are likely those least able to afford it and those enjoying the benefits are those likely to be most able to afford to meet their true costs, then something is truly wrong. “I’m starting to get the feeling that there really is something truly wrong here, but I don’t think it’s the modest impact of solar power on rising electricity costs.

Another example of the QCA’s general anti-solar stance is the statement that, “customers receiving the 8 cent per kWh are also being adequately compensated, at a rate that is above the estimated fair and reasonable value estimated by the Authority.“ In other words if a solar power customer receives 8c/kWh for their excess solar power they should be thankful because the QCA calculates that they’re really only eligible for 6.81c/kWh in South East Queensland region. How dare those solar fat-cats pocket an extra 1.19c per kWh!

With such a hostile attitude towards the solar power-owning public it’s little wonder that some of the public’s comments have returned the favour. A great comment left on the Courier Mail website by Donna of Logan said, “the government push for everyone to get solar to save money, then they realised it was costing them so they cut the buy back price 8c/kW. Now this. Well if this comes into place I will be getting the panels disconnected and arrange for someone to connect them to batteries and run the house off them and I’m sure many others will too, and there is such a company because I heard their radio ad on the radio the other day, they are going to be run off their feet I’m sure.”

I know the radio ad Donna’s referring to well because I recorded it myself. In reaction to the growing suspicion and anger the public’s showing to the electricity industry we’re now heavily promoting solar power systems with energy storage as a path towards energy independence for our customers.

My own comment on the same thread was this: “If it gets too expensive to connect solar power systems to the grid I wonder how long it will take for people to start disconnecting their solar power system from the grid? Off-grid solar works great and then you never have to talk to an electricity retailer again. And if people disconnect how will the utilities cover the revenue shortfall then? They’ll be forced to increase the power prices for everyone still on the network, which will encourage more people to disconnect. Seems like a vicious cycle.”

Dane Muldoon is head of commercial sales at The Solar Guys