Energy Oversupply Could Cut Feed-in Tariffs

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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