True Costs and Values of Solar PV - APVA Briefing Paper October 2010
6
Australian PVAssociation ABN 91 006 005 190 www.apva.org.au Response to Media Reports Regarding Photovoltaics Australian PV Association October 2010 Belowarelistedtheclaimsthathaverecentlybeenmadeinthemedia,followedbytheAustralianPhotovoltaicsAssociation’s(APVA’s)consideredresponses.Claims 1. PVwillresultinlargeincreasestopowerbills2. PVisaveryexpensivewaytoreduceemissions3. PVisinequitableinthat“BankstownuserspayforPointPiperusers”andsupportingPVisjust“middleclasswelfare”andsupportingPVthroughgrossFiTsis“likelytoprovegrosslyinequitable”.Claim1:PVwillresultinlargeincreasestopowerbillsAPVA Response: NSWwasthemainfocusofthisclaimbecauseoftheNSWGovernment’sSolarBonusSchemewhichprovidesagrossfeed‐intariff(FiT)forPVsystemsupto10kW.ThepriceofgridelectricitysoldtoconsumersissetbytheNSWGovernmentthroughits“Reviewofregulatedretailtariffsandchargesforelectricity”,themostrecentonebeingfor2010to2013.Theassociatedreportstatesthatmorethan90%ofthepriceincreasesareduetonetworkcostsandthe potentialintroductionoftheCPRS.Oftheremaining10%, lessthan5%isduetoincreasesintheretailers’margins,aswellasincreasesintheirretailcosts(whichareinpartduetotheNSWFiT)(NSWGov,2010).Thus,dependingontheincreasestotheretailer’smargins,theNSWFiTwouldaccountforonlyafewpercentoftheincreasetoelectricitycosts.AccordingtotheNSWGovernment,each50MWofPVinstalledundertheircurrentgrossFiTprogram(a60cgrossFiTover7years),willadd$7.47toanaveragehousehold’sannualelectricitybill–orjustover14cperweek(NSWGov,2009). 1 TheseareconsistentwiththeAPVA’sowncalculationsofjustover16cperweek.Evenifthefinalamount1 NotethatoneofthemediaarticlesincorrectlystatedthattheNSWGovernment’sreviewoftheirFiThadoccurredbecause500MWofPVhadbeeninstalledinNSW,whenitwasactuallytriggeredwhen50MWhadbeeninstalled.