GARETH PARKER, The West Australian December 26, 2010, 11:35 pm
The cost of the State Government's household solar panel scheme has blown out by more than 500 per cent as West Australians rush in far greater numbers than predicted to put photovoltaic cells on their roofs.
The expected subsidy to be paid by the Government to Synergy customers for the excess electricity generated by their solar panels has escalated from an initial budget of $23.3 million to $146.6 million over the next four years.
The $123 million blowout has been caused by the Government wildly underestimating the popularity of the scheme, which sees customers paid 47? for every kilowatt hour they export back to the electricity grid.
The Government predicted about 6000 homes would install solar panels but the actual figure is about 30,000 and is increasing by 2000 homes a month, driven by the 47? feed-in tariff and Federal Government subsidies for installation.
Just 1000 homes had the systems installed in July 2008.
The popularity of the scheme has exposed taxpayers to a much greater than expected subsidy to Synergy, which pays only 7? per kilowatt hour to customers.
The 40? balance of the feed-in tariff comes directly from Government coffers.
At the same time, the environmental benefits of the scheme are unclear with Synergy unable to provide any quantifiable environmental data when asked by _The West Australian _last week.
"The important point is that every unit produced by home solar systems, irrespective of whether the energy is used by the household or exported to the grid, is one unit less required to be generated from the burning of fossil fuels," Synergy spokesman Andrew Gaspar said.
Energy Minister Peter Collier defended the size of the blowout, saying it was evidence of the appetite in the community for renewable energy.
The environmental and sustainability benefits were worth the price and while the scheme would be reviewed after three years there was no sentiment in the Government to change it. "The message is unambiguous," he said. "People right throughout the State are salivating at the prospect of a more sustainable energy future."
Shadow energy minister Kate Doust said the program was always going to be over-subscribed and the Government had been caught short. She called for a review of all renewable energy programs to make sure money was being spent for the maximum environmental benefit.
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