This post records the results of an examination These are some brief comments on the Qld Competition Authority (QCA) report “Estimating a Fair and Reasonable Solar Feed-in Tariff for Queensland” (March 2013) Table numbers are QCA report table numbers. Key findings were:
- The report admits that it was only concerned with being fair to the retailers, not rooftop solar PV (RTS) owners, power generation companies or consumers. By implication, the QCA was also comitted to defending the payments made to power distributors.
- When calculating the "fair" FIT the QCA managed to find excuses for not including most of the savings associated with the use of RTS. This made an enormous difference. If these savings are included, the FIT would have to be above 100 cents/kWh before RTS stopped reducing the power bills of Qld householders who dont have RTS. The QCA exclusions reduced this figure to a measly 8 cents/kWh.
- The difference in estimates highlights the problems associated with having bureaucrats or politicians set the feed in tariff. It also highlights the problem of determining the FIT on the basis of the effect on household power bills.
- This post is not advocating that the FIT be raised to $1.00 kWh. It is suggested that auctions or some other market based system be used to set the FIT.