Col Pot's Killing Fields

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Col Pot's Killing Fields

Postby Quokka2 » Fri Aug 09, 2013 11:27 am

Owners of rooftop PV systems in Western Australia are discovering that their State Government is about to remove most of the incentive that was provided t0 establish them in the first place. The FIT of 40C that people were told was designed to pay for their system over a ten year period will reduce to 30c in October this year, and to 20c from July 2014.

In cash terms, this represents around 35% reduction for those who joined the scheme at its peak in 2011. In real terms, the export of renewable energy will not be worthwhile after mid 2014 because the subsidised FIT will still be less than the purchase price of fossil-fuelled energy. The systems that were bought up to 2011 in the belief that it was "the right thing to do" will possibly never pay for themselves, and will add little or nothing to householders' property value, being as they are, replaceable for about a third of their initial cost anyway.

It looks as though the solar energy battle has been lost in Australia's sunniest State, and that the Barnett Government is not taking prisoners from amongst the wounded. I guess politicians of any persuasion can't be trusted these days.
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Re: Col Pot's Killing Fields

Postby Privatteer » Fri Aug 09, 2013 11:45 am

Can you give a reference to this? Since I have a contract/letter stating have the fit for 10 years.
While I sure they will seek other ways of recovering more $ trying to reduce the FIT for those customers would end up in court I reckon.
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Re: Col Pot's Killing Fields

Postby Quokka2 » Fri Aug 09, 2013 11:52 am

State Budget announced yesterday:

http://www.finance.wa.gov.au/cms/content.aspx?id=14713

I just re-checked this reference and the wording has been changed since yesterday to indicate that the scheme has been extended for two years for all participants (not just the ones who only qualified for the 20c FIT in the first place) This has the effect of "reducing the reduction" to just under 28%.
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Re: Col Pot's Killing Fields

Postby davidg » Fri Aug 09, 2013 12:15 pm

Quokka2 wrote:The systems that were bought up to 2011 in the belief that it was "the right thing to do" will possibly never pay for themselves .............It looks as though the solar energy battle has been lost in Australia's sunniest State

Thats not completely true as each kWh that you don't buy still must be taken into account, while it maybe a bit rude that its been done, appararently the government contracts also included it could be chabged at anytime.
Look at Vic the FIT here is rubbish at 8cents per kWh yet they are still being installed based on the saving by not buying that power from the grids in the first place. Mind you the interest in Hybrid systems and retrofit is climbing because of the cost rises in power.

There is no doubt that it is not that far away to when a well designed and matched retrofit system will save you money fairly quickly (less than 10 years) and put one on the road to off-gird if desired. 8-)
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Re: Col Pot's Killing Fields

Postby Quokka2 » Fri Aug 09, 2013 12:35 pm

davidg wrote:Thats not completely true

Without getting into the mysteries of finance costs, depreciation etc, it is fair to say that suppliers & retailers of anything will always have a slightly different perspective than purchasers & consumers.

Retailers of energy are in a class of their own however! You wouldn't rent a house to anyone who offered to take out a ten year lease provided he could change the rent to his liking at any time. If I buy a widget too many from Bunnings I can take it back and not get offered only the wholesale price; nor is it illegal for me to sell it to my neighbour at the retail price (if it saves us both a trip to the store). ;)
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Re: Col Pot's Killing Fields

Postby davidg » Fri Aug 09, 2013 1:05 pm

Quokka2 wrote:it is fair to say that suppliers & retailers of anything will always have a slightly different perspective than purchasers & consumers.

I agree it's not really fair but apparently it's in the contract. I don't think the FIT change is fair, however under the contract apparently they have the right, it's always the fine print that will get you. :(

However like in VIC you still have to account for what you don't buy afterall it must have an impact on the bill you do pay, I wish we had at least 20cents it would be a blessing in comparision the crappy 8cents, but we don't so the way of sizing a system is no longer on the amount you get paid and more about what size you need to prodoce power that you so that don't have to pay for it from the grid, still better than NSW where a FIT is either optional and can be NO FIT at all, now I think, thats not fair at all.

Even though I design/install, I installed my own reasonably large grid-hybrid system here, it's saving more money compared to not having it, even with the high captial cost it will still pay for itself over time, operative words "over time" the payback cycle is quite long but it looks like its going to get shorter (Vic), with yet more price rises on the horizon.
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Re: Col Pot's Killing Fields

Postby mildew » Fri Aug 09, 2013 2:58 pm

Been a LIB voter in WA all my life. But if this is what they are doing they will never get my vote again. :evil:
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Re: Col Pot's Killing Fields

Postby Quokka2 » Fri Aug 09, 2013 4:09 pm

davidg wrote:I agree it's not really fair but apparently it's in the contract.

You've nailed it! If a contract cannot be negotiated before signing, and the fundamental basis on which a person enters into it can be arbitrarily removed because someone decides they'd rather spend the money elsewhere, that is not really a contract, let alone a fair contract. If the same thing is happening across the Country then I would urge anyone affected to take it up with Fair Trading/Consumer Affairs or whatever they call themselves locally. It would be really great if one of the peak industry bodies took up cudgels in a coordinated way, on behalf of the victims of untrustworthy Governments. :x
mildew wrote:they will never get my vote again

Don't imagine McGowan's Mob will ever give it back to you. :lol: (See last point in my first post)
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Re: Col Pot's Killing Fields

Postby Privatteer » Fri Aug 09, 2013 7:23 pm

davidg wrote:I agree it's not really fair but apparently it's in the contract.

The below was in a letter I recieved 27/MAY/2011 after the 40 kWh was canceled for new systems.

"you will continue to receive 40c/kWh for the net export of electricity for the full term of your 10 year contract."

I'm trying to find an older version of the rebs contract as I believe its been modified.
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Re: Col Pot's Killing Fields

Postby Quokka2 » Fri Aug 09, 2013 8:07 pm

Apparently Solar Citizens have a petition going already - please sign and let all your WA friends know.

Here's the full petition text (no, you can't sign here, see link below). There's other useful info on the solar citizens site http://www.solarcitizens.org.au

Barnett's Massive Solar Betrayal

Dear Premier Barnett, Treasurer Troy Buswell and Energy Minister Mike Nahan,
We, the undersigned, are deeply angered by your budget decision to retract the solar feed-in tariff paid to the 75,000 solar homes that installed solar between mid-2010 and mid-2011.
When we invested in solar, we did so in good faith and on the understanding that we would receive a fair return for the power we feed to the grid. This was expressed in writing - a fair price for ten years for our solar installation.
Your recent announcement to slash this tariff by half punishes hard working families for doing the right thing, and is a huge breach of trust between solar owners and the State Government.
We urge you to reverse this decision immediately.
Yours sincerely,


Sign here: http://www.solarcitizens.org.au/barnett ... r_id=15564
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