Moreland Energy Foundation

People interested in solar power may have noticed an increase in media attention to solar recently, following the NSW Premier's decision to dramatically reduce the NSW feed-in-tariff.

Some media reporting has drawn a link between solar and other renewable energy policies (including feed-in-tariffs) and electricity price rises, and some reports have gone so far as to suggest that solar schemes are heading the same way as home insulation. This article attempts to explain the costs, benefits and objectives of solar energy policies, and dispel some of the myths surrounding these policies.

The Moreland Energy Foundation has welcomed the Government’s changes to the federal Renewable Energy Target scheme (RET). The changes were temporarily held up in the Senate, with minor amendments made; however strong last-minute lobbying by MEFL and others has seen limited amendments to the original proposal, with the legislation passed largely in its entirety.

In a joint submission to the Senate Standing Committee on Environment, Communications and the Arts Inquiry into proposed changes to the Renewable Energy Target legislation, MEFL and ATA continue to strongly support the proposed changes to the Renewable Energy Target scheme, with a couple of notable exceptions.

MEFL's submission noted that the timely passing of legislation and adoption of the changes to the RET will see a re-invigoration of the large-scale renewable energy industry as well as increased certainty and confidence to small-scale renewable energy proponents.

In a submission to the Department of Climate Change and Energy Efficiency’s Enhancing the Renewable Energy Target Discussion Paper, MEFL has welcomed the intention of the Government’s proposed changes to the RET and provided a number of suggestions on the implementation and operation of the changes.

MEFL applauds the separation of the incentive for small and large scale renewable energy technologies as an important step in ensuring that voluntary action by communities and individuals is additional to national targets and reviving the ailing large-scale renewable energy industry.

However there are a number of concerns with the proposal, outlined in MEFL’s submission along with a range of key recommendations outlined to ensure the proposed changes are as effective and efficient as possible.

MEFLhas been actively campainging for changes to the Renewable Eenrgy Target (RET) scheme for some time, due to serious concerns about the design of the incentive for solar electricity under the RET.

As it stands, Solar Credits creates both a disincentive to indivuduals wishing to install roof-top solar electricity panels as well as distorting annual renewable energy targets due to the presence of 'phantom RECs'.

For more details on issues with Solar Credits, see MEFL's previous post

The Commonwealth Government recently agreed to review the scheme through COAG, looking specifically at whether adjustments should be made to the RET scheme to account for 'phantom RECs' created by Solar Credits.

In our submission, MEFL calls for:

• the immediate adjustment of annual RET targets, ongoing on an annual basis, to take into account the effect of the Solar Credits scheme; and
• the transition to a gross national feed-in tariff for small scale renewable energy and a national energy efficiency target scheme for energy efficiency technologies such as solar hot water.

Concerns around the real impact individuals can make by acting to reduce their greenhouse pollution have been getting a lot of attention recently in light of the proposed Carbon Pollution Reduction Scheme (CPRS).

Specifically, there has been a strong focus in the media because, under the current CPRS proposal, once the Government sets an emissions target, individuals undertaking voluntary action such as installing solar power, reducing their energy consumption and buying GreenPower will have no impact on the nation's overall emissions, as it simply frees up permits for other polluters to use. As a result, the same amount of gas will be going into the atmosphere and therefore there will be no net reduction in greenhouse pollution. Whilst this may be partially correct, it is only one aspect of the picture.