Prior to it’s recent election, Queensland’s Liberal-National Party promised that it would retain the solar feed-in tariff’s. The tariffs was 44 cents per kilowatt hour.
Now the Cambell Newman-led Government has announced that, from July 10, the tariff will be cut to just 8 cents per kilowatt hour. The 8 cent tariff will be reviewed by July 1, 2013 and is due to end on July 1, 2014.
The move will mean that no Australian State will have more than a nominal solar feed-in tariff.
While the effective abolition of feed-in tariffs may reduce the rate of domestic solar panel installations, large-scale solar is reaching the price point at which subsidies are unnecessary.
For example, the German company, Solaria, has just announced details of a 60 megawatt solar PV plant that it will build in Spain, which abolished subsidies as a result of its financial crisis. The company says that “We will build it in the second half of 2013 because we think the cost of PV will have dropped enough by then and, given the irradiation in Spain, will be totally competitive (with fossil fuels)”.