PIAC lodged a submission to IPART’s review of its methodology for calculating benchmark NSW solar Feed-in-Tariffs (FiT). The framework for FiTs provides one of a number of revenue streams that help determine the case for investing in and using Distributed Energy Resources (DER) such as solar PV and battery systems. A framework is required that is both fair for individuals and helps deliver an efficient energy system overall.
IPART has noted that, due to lower wholesale prices, benchmark FiTs are likely to reduce in 2021-22. While trends in wholesale prices should be reflected in FiT levels (along with trends in the rest of the supply chain), IPART’s methodology does not recognise the merit order impact of solar. While wholesale prices may be lower, we consider solar’s merit order impact means the FiT benchmark range should not be reduced by the same amount and the upper limit of the benchmark range should be considered the best reflection of the socialised benefits of solar generation.
PIAC supports IPART’s proposed change to its methodology for calculating the solar multiplier and the development and use of time-varying FiT benchmarks.
