Feeds

Australia cuts solar subsidies, and not before time

It's becoming competitive, and doesn't need support

Build a business case: developing custom apps

Before anybody denounces me as being “anti-solar” I want to put this on the record: I own 16 solar panels, a largish inverter, and because the system was built in the days before grid-connect arrived in Australia, a decent-sized bank of batteries.

Australia is now host to a lively – in fact, heated – debate over the way governments are winding back various solar power subsidies. Last year, the NSW government reduced the “feed-in” tariff that consumers would be paid for power coming from their solar panels; this month, the federal government cut the subsidy it will pay for installing solar power.

That subsidy, which peaked at more than A$6,000, will now be around A$1,200 for a 1.5 kW system.

That is, of course, a trigger for doom-and-gloom statements from interested parties, environmental lobbies, and the solar power industry – but I wonder whether things are as bad as they seem.

One thing that people forget is just how far the price of some solar components has fallen in recent times.

I have on hand a 2008 price list from a solar components supplier. In that price list, a 130-watt panel from Kyocera costs A$1,100. Today, from the same retailer, the best price is under A$800 – a fall of nearly 30 percent in just three years.

That is a pretty dramatic reduction in price – not so much as you might expect if you were accustomed to the computer industry, but significant. And that price deflation has happened in the presence a significant subsidy, which would tend to put a floor under prices.

The removal of the subsidy should tend to drive down prices. Retailers need to keep the stock turning over, and if the prophets of doom are correct, they will have to do so in the face of bankrupt stock hitting the market sometime soon.

Of course, panels aren’t all there is to a solar installation. The other big-ticket items are inverters (grid-connect or standalone, depending on system type) and batteries (for off-grid systems).

Grid-connect inverters have seen some small price deflation – about 10 percent; standalone inverters haven’t fallen at all; and battery prices have risen. Note that standalone inverters and batteries are characteristics of off-grid solar, which doesn’t attract the same government support as grid-connected systems.

All this combines to suggest to me that the market dynamics here are more complex than “subsidy equals success, no subsidy equals disaster”.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Gigantic toothless 'DRAGONS' dominated Earth's early skies
Gummy pterosaurs outlived toothy competitors
Vulture 2 takes a battering in 100km/h test run
Still in one piece, but we're going to need MORE POWER
TRIANGULAR orbits will help Rosetta to get up close with Comet 67P
Probe will be just 10km from Space Duck in October
Boffins ID freakish spine-smothered prehistoric critter: The CLAW gave it away
Bizarre-looking creature actually related to velvet worms
CRR-CRRRK, beep, beep: Mars space truck backs out of slippery sand trap
Curiosity finds new drilling target after course correction
'Leccy racer whacks petrols in Oz race
ELMOFO rakes in two wins in sanctioned race
Astronomers scramble for obs on new comet
Amateur gets fifth confirmed discovery
Boffins build CYBORG-MOTHRA but not for evil: For search & rescue
This tiny bio-bot will chew through your clothes then save your life
What does a flashmob of 1,024 robots look like? Just like this
Sorry, Harvard, did you say kilobots or KILLER BOTS?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.