Solar energy costs, especially small scale, overestimated by 2 Australian agencies

renewable energy is coming down in price and fossil fuels are going up. In a carbon-constrained world, renewable energy is an investment in a lower electricity cost future for all Australians compared to the one they would face without it. Solar power will cost far less and provide far greater benefits over the medium term.”

Productivity Commission And EUAA Blinkered On Solar by Energy Matters, 3 Jan 2012, Two Australian bodies criticising the cost of solar power have again failed to factor in all the benefits of the technology.

A Productivity Commission report from June this year was widely criticised by the solar power industry and supporters for stating rooftop solar has “generated little abatement for substantially higher cost”.

According to a recent article in The Australian, the backlash saw the Productivity Commission check over its figures recently and the Commissions has revised the cost of the small-scale component of the federal government’s Renewable Energy Target and state-based feed-in tariffs downwards – by tens of millions of dollars.

However, the Productivity Commission continues to dig its heels in relating to small scale solar’s cost generally.

The revised figures were released just days after the Energy Users Association Of Australia reportedly stated the already greatly reduced Solar Credits rebatewill drive up electricity prices by almost $10 per megawatt hour during this year. EUAA members include Anglo Coal Australia, BP, Caltex and Rio Tinto,The solar industry has suffered at the hands of analysts, agencies and trade associations that continually base their views on old data, incorrect data and a blinkered view says Jeremy Rich, CEO of national solar solutions providerEnergy Matters. Mr. Rich says this has resulted in the cost of solar being overestimated and its performance underestimated.

“We can play battle-of-the-studies forever, but the bottom line is this – renewable energy is coming down in price and fossil fuels are going up. In a carbon-constrained world, renewable energy is an investment in a lower electricity cost future for all Australians compared to the one they would face without it. Solar power will cost far less and provide far greater benefits over the medium term.”

“The EUAA and Productivity Commission should not only strive to cost these schemes accurately, but also expend more effort on recognizing their value; such as the ability of solar to drive down wholesale electricity prices.” says Mr. Rich. http://www.energymatters.com.au/index.php?main_page=news_article&article_id=1961

January 3, 2012 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, solar | solar

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