CLIMATE SPECTATOR: How much is solar PV worth?

Energy utilities and the solar industry are at loggerheads over the value of rooftop PV, the existence of competitive market forces and the curly issue of incentives.

By Giles Parkinson ·
23 Sep 2011

Climate Spectator

Submissions to the review of solar PV tariffs have been made to the Independent Pricing and Regulatory Tribunal in NSW, and it appears that the established energy utilities and the emerging solar industry are as far apart as ever over the value of electricity produced on the nation's rooftops.

IPART has been commissioned by the NSW government to try and find out the "fair and reasonable value of solar PV” and then try and decide who should pay for it. None of the utilities are putting their hands up to volunteer, and some networks even concede that a mass rollout of PV would be a threat to their business model.

The position of the energy utilities is quite firm: electrons from solar PV installations are not worth any more than those from a coal-fired power station – even if they concede that they merit a higher wholesale tariff (6c-8c) because of the time of the day the solar panels produce electricity. And if there are any other benefits, then someone else should pay for them.