[Greens-Media] Untying the solar bonus knot: make the retailers pay

[John Kaye]

Untying the solar bonus knot: make the retailers pay

Media release: 20 May 2011

The Greens will introduce amendments to the O'Farrell government's solar
bonus scheme legislation to make the electricity retailers pay for the power
they receive from households ('Nile, shooters to force deal on solar bonus'
Sydney Morning Herald 20 May 2011, page 1, http://j.mp/smh110520

Greens NSW MP John Kaye said: "Premier Barry O'Farrell is facing a full
sized revolt against his plans to cut the solar bonus tariff from 60 cents
per kilowatt-hour to 40 cents for existing participants and close the scheme
to new households.

"His legislation is in deep trouble in the Upper House, in his own Coalition
and in the community.

"Mr O'Farrell needs to look for another solution to his problems that does
not betray existing participants and protects the 5,400 jobs in the rooftop
solar industry.

"Since the scheme was set up 18 months ago, retailers have received the
solar power without paying for it. The cost burden has fallen on all NSW
households.

"The retailers have had a free ride to the tune of up to $100 million a
year. It is time that they paid for the solar energy they receive at the
same price at which they sell it back to other customers.

"The $100 million a year this would raise would help cover the costs of
parliament's 60 c/kWh promise to the existing participants. It would
eliminate the O'Farrell government's rationalisation for cutting for the
bonus rate should from to 40 cents.

"The payment at the retail rate will also encourage enough new participants
to keep the industry alive.

"The newly privatised retailers will no doubt squeal at the prospect of
losing  their nice little earner.

"It is only fair that they pay for the energy they receive.

"Solar power it is delivered in the middle of a residential neighbourhood.
There are none of the infrastructure costs associated with bringing energy
from the coal-fired power stations. Roof top solar power can be sold to the
next door neighbour with very little additional cost.

"The previous government gave the retailers a $100 million a year solar
gift.

"The bonus scheme is in trouble. It makes sense to end the corporate gravy
train and force  the energy companies pay for the power they receive," Dr
Kaye said.

For more information: John Kaye 0407 195 455


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John Kaye
Greens NSW MP
phone: 0407 195 455
web: www.john.nsw.greens.org.au
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