Media Releases | 1st Sep, 2011

Slashing solar tariff breaks election promise

Thursday, 1 September 2011

Environment Victoria has strongly criticised the decision of the Baillieu Government to reduce the feed-in tariff for solar power saying it breaks an election promise.

The Victorian premium feed-in tariff has been reduced from 60c/KWh to 25 c/KWh without any consultation with the community or solar industry, pre-empting a promised inquiry into ways to strengthen support for solar.

Environment Victoria’s Mark Wakeham said today:

“The decision to reduce support for solar power, in the same week as the decision to shut the door to new wind farm development, is extremely disappointing.”

“This decision makes installing solar power less attractive financially at a time when we need it more than ever.”

“The Government claims the scheme is costing too much and that reducing the feed-in tariff will not affect payback times for households or businesses, but they haven’t released any analysis to substantiate these claims.”

“Before the election, the Coalition made a clear commitment to conduct a Victorian Competition and Efficiency Commission (VCEC) review to look at strengthening feed-in tariffs. Nowhere did their energy policy mention cutting the tariff.”

“This decision is premature and damaging to Victoria’s clean energy future.”

“We’re extremely disappointed that the Coalition is undermining the development of another popular clean energy technology.”

“It’s particularly surprising since the Coalition were strong supporters of solar power in opposition, with now Ministers David Davis, Robert Clark and Peter Hall all playing a role in strengthening Victoria’s solar feed-in tariff in 2009.”

“This announcement caps off a disastrous week for renewable energy in Victoria. It appears that the only plan the Coalition has on climate change is to ensure Victoria misses out on the clean energy investment boom.”

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Louise Matthiesson 0417 017 844