While Victoria, South Australia, and Queensland all have net FiTs, which pay a premium only for power export to the grid, the recently announced solar FiT for New South Wales will pay on the entire amount of solar generation from systems up to 10 kWp, modifying the initially proposed net FiT, which would have run for 20 years. The gross FiT also means that more affordable small installations of 1.5 kW again become financially sensible investments, especially as those installing such systems are also entitled to solar credits – the complementary federal government support measure that targets 1.5 kW systems.
As such, the New South Wales FiT will be Australia’s most attractive and will open up the market for small scale commercial systems, which could have paybacks within seven years. A similar gross fiT model is in place in Germany and has been incredibly successful in making the country one of the most proliferate users of solar energy.
Max Sylvester, co-founder of Energy Matters, a renewables energy provider in Australia is pleased. "This is wonderful news for solar supporters in New South Wales and also for the industry. The fact that the NSW government has recognized that a gross FiT is not only the best way to stimulate renewable energy uptake, but is also an economic stimulus package without the public debt is very encouraging. Let's hope other states follow the lead, with the ultimate goal being a national gross FiT programme," he told Energy Matters, one of Australia´s leading renewables companies.
The Alternative Technology Association (ATA) has also applauded the announcement: "We welcome the decision to pay households for all the clean energy they contribute to the state's electricity supply. It is a win for families who are taking action on climate change and for green jobs in NSW." said Damien Moyse, ATA's Energy Policy Manager.
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