Power price rise fears

HOUSEHOLD power bills could rise by up to $100 this year as the demand for rooftop solar panels continues to drive up the cost of subsidies for taxpayers.

The solar energy industry is expecting the total cost of subsidies to rise to about $1.3 billion this year, based on an estimate by the Clean Energy Regulator.

That’s a significant hike on the value of the subsidies last year, estimated to be $500 million in industry analysis.

It’s prompted calls by the solar industry for Energy Minister Josh Frydenberg to reduce rooftop solar subsidies by cutting the price of the certifi- cates that electricity retailers are required to buy.

Jeff Bye, founder and owner of Demand Manager in Sydney, a company that creates and trades the certificates, told The Australian the rebate could prompt a $100 hike in power bills.

He said the current subsidy was “overly generous”.

“There are strong reasons to support installation of rooftop solar in Australia; however, it’s a question of the degree of support needed,” he said.

“The cost increase (this year) is about $800 million and there are eight million households … so there’ll be a cost impact of around $100 per household.”

Mr Frydenberg said the Australian Energy Market Commission predicted electricity prices would fall over the next two years. He said the commission had found the average cost to households from solar panel subsidies over the past five years was about $29 a year, with the price peaking in 2012 at $44 for the year.