feed in tariff reducing while electricity prices continue to

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feed in tariff reducing while electricity prices continue to

Postby sheila » Thu May 08, 2014 1:47 pm

I am incensed by recent directive that feed in tariff for solar electicity is being reduced by 2.2c per kWh in South Australia when electricity prices are due to rise substantially fron July 1. I have been advised by ESCOSA that the wholesale cost of electricity dropped in 2014 therefore the feed in tariff had to be reduced to avoid big increases across the board. Surely if the wholesale cost decreased then there should be no increase in July. For 6 months of 2014 we are paying a rate relative to the "Higher" wholesale costs of 2013. Who is winning here.
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Re: feed in tariff reducing while electricity prices continu

Postby bpratt » Thu May 08, 2014 4:28 pm

It's the electricity companies that keep on making the big bucks, whilst those who made the effort to reduce the peak demands on the network by providing electricity back on to the grid are getting penalised.

I'm not talking about getting paid more than what the power is onsold for, but something that is closer if less than what they onsell it for.
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Re: feed in tariff reducing while electricity prices continu

Postby Tracker » Fri May 09, 2014 9:29 pm

sheila wrote:I am incensed by recent directive that feed in tariff for solar electicity is being reduced by 2.2c per kWh in South Australia ....

IMHO... THEY are playing with fire... They think tht they have the power to do as they please....

what do they say , is the mother of invention... :?: ..

Well anger is a good possibility ...

Anger will cause many to invest in self contained power systems, and they will be lost to the grid.. to the retailers and the generators.
. the only hope is that those businesses will fail, and will be taken over by those with more realistic expectations..

So, those who can will DIY.... and those who can't will likely suffer even more..
Until THEY come to understand that whilstever the sun shines, THEY cannot control energy..
..
.
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Re: feed in tariff reducing while electricity prices continu

Postby Aus » Wed May 14, 2014 12:04 am

sheila is very right in feeling very angry about the retailer FIT being reduced from 9.8 to 7.6c/kWh. There is a bit over 400MW in installed solar panels on domestic roofs in Adelaide (plus more on commercial buildings) and, doing the $ sums on the amount of energy generated by the 400MW in a year, it means that the electricity retailers here will cream off about $9,000,000 every year from South Australians who have put their own (non tax deductible, non depreciating asset write down) money into solar power to help the environment and to reduce their electricity bills.
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Re: feed in tariff reducing while electricity prices continu

Postby Tracker » Wed May 14, 2014 12:02 pm

Aus wrote:.....FIT being reduced from 9.8 to 7.6c/kWh. ..... the electricity retailers here will cream off about $9,000,000 every year from South Australians.....

Not concerned for the basic maths, but the other side of the page shows that the PRICE paid for wholesale electricity , is more like 5 to 7c a unit..

So you do have to understand that NO ONE will be keen to officially buy power from you at some "Fair" price, when they can get it for 5c from conventional sources..

The killer punch comes from the fact that Solar-Power has gutted the power industry to a fair degree..
THEY are worried in the board rooms, because of the effect of PV..

I read where 25% of the power generators annual "Profits" , came from the massive peak transients, that they have to cope with..
Because of PV, these PEAKS just don't happen like they used to, resulting in a massive reduction in profits..

So - THEY ALL take steps to improve their bottom lines, and naturally at OUR expense..

OUR challenge , is to find ways of minimising the power that we feed to the GRID and maximising the power, OUR power, usage..

The challenge for the industry, is to develop devices that will assist us in using our OWN power..
..
.
Retired Engineer and keen PV experimenter - Always ready to learn and share.
2 x CMS2000 (fan cooled) GCI and SE 170W panels
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Governments won't save the world :-) They will just TAX it :-(
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Re: feed in tariff reducing while electricity prices continu

Postby Tracker » Wed May 14, 2014 1:14 pm

http://forums.whirlpool.net.au/forum-replies.cfm?t=2254484

Have a read of this interesting thread on the subject..

Nigel Morris: It is the next big game changer. All the numbers, and all the companies that I'm talking to who are involved in this space keep showing me data that suggests that it's actually going to happen quicker than everyone thought.
Jess Hill: Nigel Morris is a solar business consultant who spent 12 years working in the solar division of BP. He says that by next year we could see solar storage options that make economic sense in Australia. After that, he says the costs will come down fast, thanks largely to a $5 billion factory that's being planned in the United States.


:idea: ... :D ... :D
..
.
Retired Engineer and keen PV experimenter - Always ready to learn and share.
2 x CMS2000 (fan cooled) GCI and SE 170W panels
1.7kW First Solar/Outback Island circuit - Peak Replacement Power
Governments won't save the world :-) They will just TAX it :-(
Tracker
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Re: feed in tariff reducing while electricity prices continu

Postby Aus » Wed May 14, 2014 5:54 pm

This is a bit of the track from the FIT rate but is certainly related.
"Tracker" mentions about the wholesale price of electricity being around 7 - 9c/kWh. This is an averaged cost not a real time of day cost. Power stations bid every half hour into the electricity "pool" and the prices can vary from $12/kWh through to (minus!!)$1/kWh.

It is the longer summer days that electricity pool prices will range between $1/kWh and $12/kWh, so solar energy prices should be lined up with daytime energy prices not the theoretical "minimum forgone generating cost" that is used at the moment.
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Re: feed in tariff reducing while electricity prices continu

Postby Smurf1976 » Wed May 14, 2014 6:53 pm

Once the carbon tax is gone, typical daytime (when the sun is shining) electricity prices will likely drop back to somewhere around 4 cents / kWh.

Sure, there will still be the occasional spike to $12 but those are pretty rare in practice.

I wouldn't be surprised if the 8c FIT's are reduced to around 6c in due course because of this.
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Re: feed in tariff reducing while electricity prices continu

Postby Tracker » Wed May 14, 2014 7:24 pm

Aus wrote:This is a bit of the track from the FIT rate but is certainly related......


Oh no.. It aint OT IMHO ..

You cannot separate the normal wholesale price movements, and the amount that they pay us.. the FIT..
It is idealistic to think that we should be paid the same going rate as the generators.. but it aint gona happen..

As commented previously - the stingey government wants to de-regulate the market and that will mean even LESS chance of a fair cop..

So - that will simply result in that previous observation - PV Owners will fund technology that means they will export NOTHING, and that will simply put even more pressure on the generators.. :roll:
..
.
Retired Engineer and keen PV experimenter - Always ready to learn and share.
2 x CMS2000 (fan cooled) GCI and SE 170W panels
1.7kW First Solar/Outback Island circuit - Peak Replacement Power
Governments won't save the world :-) They will just TAX it :-(
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