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.