NSW Solar Schemes Cut Back

In a shock announcement on May 13^th, the state government of New South Walesannounced the permanent closure of the solar bonuses and schemes being implemented in the state. Along with that come changes to the feed in tariff scheme for existing users as well.

The original feed in tariff arrangement granted a premium rate of 60 cents per KW fed back to the grid which was supposed to be guaranteed under contract for a set period of time. However with the recent changes system owners who were eligible for the 60 cent rate will now only be granted a rate of 40 cents, and new systems will only be at the rate of 20 cents.

Solar PV system purchasers in New South Wales are flooding to question what has happened, especially those who signed up for an original 60 cent rate under the expectation that it was for a fixed term. The legality of the recent changes had also been questioned as there was no notice given and no public discussion held.

The state of New South Wales also set a cap limit with a binding contract that they would not close the solar bonuses and schemes until the cap is reached, however have terminated the scheme without the cap being reached.

These recent changes to the schemes without notice will put negative feedback on the solar industry and its promotion, even though these decisions are completely out of the hands of solar companies. There will be reason for Australians in all states to doubt the schemes that have beenimplemented, and NSW’s decision may take a toll on the drive to convince as many homeowners as possibleof the benefits of switching to renewable solar energy. Some people are likely to lose confidence and trust in what long term return they can expect from their solar investment, which is reasonable if it can’t be guaranteed