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Home » AGW and climate change » Well lets look at the real middle class welfare of domestic solar power…

Well lets look at the real middle class welfare of domestic solar power…

Its a rip off and its the poor and those who rent who are being slugged every time they turn on a light or boil their kettles for a cuppa, Yes I’m talking about those roof top Solar installations that are so beloved by those of the Latte sipping persuasion,  While these minions of the left may  complain bitterly about “middle class welfare” they are happily dreaming  photo-electric dreams of their roofs covered with money making appliances.

Costly: Householders face additional burdens to cover the cost of solar electricity feed-in tariffs. Picture: Luke Marsden Source: The Courier-Mail

HOUSEHOLDS will soon be slugged $240 annually to pay for the power produced by rooftop solar systems.

New modelling has revealed that by 2015-16, almost 15 per cent of the total household power price will fund the solar feed-in tariff.

The Newman Government has already cut the tariff for home-produced power to 8 per kilowatt hour for all solar systems bought after July 9.

However, the new figures exposing the huge burden being carried by all consumers to pay those who produce solar power may prompt the Government to also reduce the 44/kWh tariff paid to those who previously installed photovoltaic systems.

The Government is investigating ways to reduce network costs – the price of moving electricity from the power generators to people’s homes – which account for about 50 per cent of all electricity prices.

The modelling by the Queensland Competition Authority estimates the costs caused by solar for consumers will fall to just under $100 annually, or 6 per cent of power bills, by 2019/20.

Energy Minister Mark McArdle said the Government’s decision to cap the scheme had already produced significant savings.

Mr McArdle said the solar feed-in tariff would have cost $1.8 billion by 2028 but this had been reduced by $300 million.

“This cost is passed through to all households in the form of higher network charges, which just adds to the burden of this scheme,” he said.

“What we have here is Labor, and its Green partners, hiding its head in the sand and continuing to claim that renewable energy schemes are decreasing the cost of electricity. This is blatantly untrue and the modelling by the QCA should finally end this.”

source

This is the real middle class welfare comrades and its clear to me that this is the sort of thing that will be killing our economic position far more that things like the baby bonus but of course its the inner city demographic who love the idea of “renewable energy” so the Labor governments who are so indebted  to them have to keep them sweet. Sadly its we ordinary electricity consumers who have declined to sup at the solar trough who are paying through the nose each quarter so that these green parasites can feel good about the planet. Could any of you guess that my $500 electric bill is due in a couple of days?

Cheers Comrades

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6 Comments

  1. deknarf says:

    Iain, just have a look at how much State Governments are pulling in ‘dividends’ and other sneaky payments from the utilities. That’s actually a hidden tax and it should be rightfully returned to the bill payers (reduced bills), not snaffled by greedy state governments and greedy suppliers. There is reams of information about these grabs about and nothing is done about redressing the balance (don’t see much noise in the media). So if you can afford to go solar and gain a benefit, why wouldn’t you? As for your ‘battlers’ — wasn’t it a Liberal who said that; ‘Life wasn’t meant to be easy’? Who are currently the biggest snafflers of this money — State Liberal governments predominantly!
    PS: I hate latte — give me a long black any day!

  2. Iain Hall says:

    deknarf
    I have always thought that the notion that energy supply should be privatised was wrong headed and up here we were promised (by Labor) that it would mean cheaper power but that has not been our experience in the cold hard light of day. I agree with what you say about state government and utility rip-offs though.

    As for taking up the “solar” scam I have resisted on a matter of principle because I consider the whole thing rather misguided and unsustainable ion the long run as well as the fact that my house is surrounded by trees that over shadow the roof.

  3. deknarf says:

    Keep your trees — you’ll get more value from them in the long run just in their cooling effect alone. I had a go at the excessive costs in NSW a while back. (Below).

    http://deknarf.wordpress.com/2012/06/20/the-rant-11-oh-little-electron-why-art-thy-so-costly-2/

  4. Iain Hall says:

    nice post that puts our electric costs into a Global perspective 🙂

  5. Tel says:

    “I have always thought that the notion that energy supply should be privatised was wrong headed and up here we were promised (by Labor) that it would mean cheaper power but that has not been our experience in the cold hard light of day.”

    Speaking from the perspective of the New South Wales experience, many people get very confused about the private vs public debate. There are three layers of the electricity industry (not counting regulatory authorities on top of that). The first layer is electricity generation, that is the actual shovelling coal into a firebox, boiling water to make steam and spinning turbines. That’s where it all starts, at the generator. So in New South Wales, any private entity can own and operate a generator should they wish to spend the money and go through the necessary paperwork. Generators all sell into the same market, which is managed by AEMO and they publish the market prices on their website (average generator price is approx 5c per kWh, yes that’s 1/5 of what you pay at your door).

    The next layer is the distribution layer, this is the poles and wires and maintenance thereof. There are only three distribution companies in New South Wales and they are all state government owned, and no you are not allowed to start your own distribution company. The three government owned distributors do not compete with one another, they have separate territory so any particular electricity buyer is always in the territory of exactly one electricity distributor. These companies make the lion’s share of the revenue.

    Then there is the retail side of things, which makes the third layer. Retailers just put their name at the top of the bill, answer phonecalls and chase up late payments. That’s all they do, they are a bean-counting operation, nothing whatsoever related to electricity, and they do not set prices. Prices for electricity are set by government authority (which is Federal if I remember rightly, but don’t quote me on the details). The retailer can offer a discount, but almost all of them offer the same 10% discount or close to. You have many private retailers to choose from, but don’t strain yourself making a choice, because really there is no choice. The retailer must buy from the distributor at a monopoly price. The distributor does all the actual fault fixing and wiring.

    If you spend 11 cents on electricity in New South Wales, 1c goes to GST right away, then 5c goes to the government owned distributors, 2c to the generators, 2c to the retailers, and the last 1c goes to various green schemes, solar, carbon tax, and other sundry crap. Also, the state government collects payroll tax at every stage of the process and the feds collect a bunch of other taxes. Those numbers are a bit approximate, but there are some websites out there trying to chase down finer details. In short, more than half the money is still going to government.

  6. Tel says:

    deknarf,
    Sorry I couldn’t find the button to reply on your blog. Anyhow, you claim:

    “The National Electricity Market, said Oakeshott, was the greatest market failure in Australia today, sending cost of living pressures through the roof. He has a point.”

    What? Market failure? The electricity distributors are monopolists, pure and simple; by government fiat. This is a regulatory failure. If a market is to operate then it must be competitive, and people must have choices available to them. Please, it’s a very simple concept.

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