MEDIA STATEMENT: QPC releases Issues Paper for Solar Feed-In Pricing Inquiry

The Queensland Productivity Commission (QPC) is seeking input into the Solar Feed-in Pricing Inquiry.

Releasing an issues paper for public comment, Principal Commissioner Kim Wood said the inquiry will report on an appropriate framework for pricing solar exports from small customers.

“The Government has asked us to determine a price for solar exports based on the benefits, while ensuring feed-in tariffs do not impose unreasonable costs on electricity customers, particularly vulnerable customers.

“A major challenge to pricing solar exports is that they can accrue benefits and impose costs to parties inside and outside the solar export market.

“Other factors, such as the rapidly changing market and potential cost-effective battery storage in the future, make for a complex assessment.

“The QPC will consider a range of matters including the value of solar exports, how feed-in tariffs could be designed and paid and whether tariffs should be mandatory or voluntary. The inquiry will also investigate barriers to solar export pricing, and options to address those barriers”, Mr Wood said.

The inquiry does not cover the now closed 44c/kWh Solar Bonus Scheme, which will be considered as part of the concurrent QPC inquiry into electricity prices.

The QPC will consult widely with consumers, industry and government throughout Queensland during the inquiry. A draft report is scheduled for release in February 2016, with a final report
provided to the Government at the end of May 2016.

Submissions on the issues paper are invited by 23 November 2015. The issues paper can be accessed at http://www.qpc.qld.gov.au/inquiries/solar-feed-in-pricing/.