According to an analysis released today by the REC Agents Association (RAA), the Small-scale Renewable Energy Scheme (SRES) of Australia’s Renewable Energy Target (RET) will have a zero net cost impact on household power bills
The SRES component of the RET supports the installation of solar panels on homes and businesses.
RAA states the cost of the SRES is expected to halve over the next two years to less than one per cent of a power bill.
Additionally, a reduction in wholesale electricity prices delivered by the million plus solar power systems installed on rooftops across Australia will lower it even more.
“In fact, residential customers will be better off in the future with the operation of the SRES as the reduction in the wholesale price exceeds the cost pass-through on customer bills,” states the report.
The revelation has come at a crucial time, with the RET review by the conservative Liberal-National government now under way.
“This analysis destroys the myth that the Renewable Energy Target is a major driver of soaring power bills,” said Ric Brazzale, President of RAA.
“The Renewable Energy Target is low cost and high achieving. It must be maintained to finish its job.”
“RAA’s analysis shows regulated transmission and distribution cost has been the biggest driver of rising power prices to date and is expected to be the major contributor to rising power prices in the future”, said Mr Brazzale.
Among the many benefits of the RET, Vice-President of RAA Fiona 
said the SRES component has assisted five million Australians in slashing their power bills and has created 15,000 jobs;
She added “and will do so at zero cost to households or the Federal Budget. That is an extraordinary achievement.”
Currently, the cost of the SRES accounts for just 0.54 cents per kWh or two per cent of power bills.
Even with all the evidence mounting that the RET provides considerable financial benefit, its continuance after the review is by no means certain.
Concerns have been raised about the backgrounds of some of the members of the review panel, including its head Dick Warburton, a know climate change denier.
Key findings from the RAA analysis are:
- The cost of the Renewable Energy Target that gets passed through to residential customers currently amounts to a modest 1.12 cents per kilowatt hour (kWh) or 4per centof the average residential electricity bill.
- The cost of the SRES currently accounts for 0.54 cents per kWh or 2 per cent of a customer’s bill and is expected to more than halve over the next two years to account for less than 1per cent.
- The RET puts downward pressure on wholesale electricity prices and as a result wholesale prices are considerably lower than expected. The reduction in the wholesale price due to the RETis estimated to be 0.67cents per kWh.
- In the case of theSRES the reduction in the wholesale price cancels out the future cost increase that gets passed through to customers.
The full report can be found here
