Colleagues
Any information as to when or if QLD will pay the gross rather than the net amount for electricity generated?
AND
Is it the electricity companies that pay the cost of buying the electricity or the state governments?
NSW paying the gross amount makes the installation really make sense, but up here in QLD its tokenism. I will probably go for 1.5 to get the REC advantage with a 3kw inverter to upgrade later if at all. Any thoughts?
Tony C
Member
Be aware that RECs only apply on the first installation, it may be cheaper in the liong run to get a 3kw system now if that is what system you need.
The gross feed in tariff does not encourage people to reduce their consumption, the nett system does. The QLD nett system will also be around a lot longer that the NSW gross system.
I think there will be a lot of angry people when NSW goes nett and the people find out the system they purchased is too small.
Just my thoughts.
Tony
rsigmund
Member
Tony C
I think one of your statments is misleading....
"The gross feed in tariff does not encourage people to reduce their consumption, the nett system does"
Both tarrif regimes promote energy use reduction but the nett system has a higher/greater cash incentive per kilo watt of reduction....
Depends on the tarrif but here is a very basic analysis using a retail rate of 17c and 60c for the FIT
Cost Payment Total
Gross
Use 1Kwh -17c 0c -17c
Dont use 1Kwh 0c 0c
Produce 1Kwh 0c 60c +60c
In the gross case the incentive is 17c per kW of reduction
Nett
Use 1Kwh -17c 17c 0c
Dont use 1Kwh 0c 60 +60c
In the nett case the incentive is 60c per kW of reduction
Tony C
Member
rsigmund, Sorry if this is being 'simple' but I cant understand your maths.
My understanding is:
Gross:
Install 1.5kw system, it produces 1.5kwh (theoretocal) and the householder uses 0.5kwh duringpower producing period. They get paid 90c even though they only export 1kwh. If they use all power produced they still get paid 90c, therefore they get paid to NOT export power to the grid.
Nett:
Install 1.5kw system, householder uses 0.5kwh during power producing period therfore 1kwh is exported to grid, they get paid 60c (theory) for excess power. If they use all of the power produced they get paid NOTHING.
On this basis it appears to me the the gross feed in does not encourage the householder to reduce their consumption but the nett system does.
Am I understanding GROSS FIT incorrectly? Any feed back is appreciated. I am in QLD so we have Nett FIT
Tony
rsigmund
Member
I think we are on the same page - the difference is in the border conditions.
The thing you left out in the 'gross:' is that there is a charge for every black Kwh eg 17cents. So they do get paid not to export, but at a lower rate eg 90 - (1.5 * 17) = 64.5.
The point to remember is that if the PV install has not sold the RECS and remains green (not likely since the recs multiplier)... Then you are being paid for the greeness of your energy rather than 'getting paid not to export'
But there seems to be a problem of combining the tariff and subsidies!
