Frontier reports on ‘fair and reasonable’ solar feed-in tariffs

Until recently, customers in New South Wales (NSW) who install solar photovoltaic units (PV units) received very generous feed-in tariffs through the NSW Government’s Solar Bonus Scheme. To restrain the increasing costs, the NSW Government closed the Solar Bonus Scheme to new customers and asked the Independent Pricing and Regulatory Tribunal (IPART) to recommend a subsidy-free ‘fair and reasonable’ value for new customers. Frontier (Australia) was asked by IPART to advise on the ‘fair and reasonable’ feed-in tariff for customers in NSW.

Frontier’s draft report for IPART determined the market value of solar PV generation based on data on half-hourly PV generation and forecasts of half-hourly prices. The analysis found that the market value of solar PV generation can vary significantly with differences in prices, but tends to be relatively consistent for solar PV units of different sizes.

Frontier regularly advises public and private sector clients on pricing regulation.

For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com or call +61 (0)3 9620 4488.

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