Popularity sees solar rebate scheme slashed Updated October 27, 2010 16:08:00
The solar scheme has been popular with home owners. (ABC Local: Tamara Binamat)
Video: Solar rebate scheme slashed (7pm TV News NSW) The New South Wales Government is slashing the tariff it pays under its solar bonus scheme.
The scheme was introduced in January and pays 60 cents per kilowatt hour for all energy produced. It is meant to run for seven years.
The Premier says more than 50,000 households have taken advantage of the scheme and are generating nearly 200 megawatts of power.
Kristina Keneally says the cost of solar panels has halved and that has led to a greater than expected take up, which is putting pressure on electricity prices.
To make the scheme more sustainable, the tariff for new applicants will be just 20 cents per kilowatt hour from midnight tonight.
Ms Keneally says that will slash $2.5 billion out of the cost of electricity prices.
"This is about reducing the burden of electricity prices on the household budget," she said.
Greens MP John Kaye supports the move and acknowledges the need for the solar bonus scheme to be revamped.
But he believes a tariff of 20 cents per kilowatt hour is too low and wants a 30 cent tariff.
"That would be less that $7 per household per year," he said.
Legislation has been introduced to effect the change.
Ms Keneally says future tariff changes may occur through regulation.
The Premier has also announced an inquiry to investigate ways of putting downward pressure on electricity prices.
It will be conducted by the chair of the Australian Energy Market Operator, Tom Parry, and will look at options to reduce or defer electricity network charges.
