Energy Oversupply Could Cut Feed-in Tariffs

high solar take up will of solar power could over supply the grid during low demand periods and this will also mean that state governments and retailers subsidizing energy that had no real value

Solar panel growth could lead to a cut back in feed-in tarrifs due to oversupply issues during low demand periods reports The Guardian.

Clean Energy Regulator reported a record 3.5 million solar panels installed on rooftops on Australia last year. Increase in supply to the grid could force state governments to cut feed-in tariffs because there the oversupply makes this extra power “worthless”.

Here are the key takeaways:

  • If the government determines that the subsidies on oversupply to the grid has no value they may cut feed-in tariffs.
  • Other parties believe it would be more appropriate for the government to reform how the tariffs work to make them more cost effective.
  • Another solution could be to limit output to the grid during low demand periods.

Click here to read the full story on The Guardian

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Written by Jon Capistrano

Jon specialises in research and content creation for our outreach campaigns. He’s worked as a technical support representative for Dell, America Online, Xbox and Dodo Australia. He’s an avid scooterist and musician.

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