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Solar PV projects have 'added little' to electricity prices

The impact of the government's solar photovoltaic program on electricity prices has been kept to a minimum, an expert has said.

Head of consulting firm Solar Business Services Nigel Morris explained that to some extent, there has been a lack of clarity surrounding the cost of the initiative.

A report from the Australian Energy Market Commission released last year found that it was adding 0.03c/kWh to the electricity prices paid by consumers.

There is an extra 3c/kWh added to bills to foot the transmission costs, he told reneweconomy.com.au.

"It's hard to understand how the government could be factoring in negative growth in the solar industry - either they don't understand or there is something else going on," commented Mr Morris.

This follows a report from the Conversation, which suggested that energy bills sent out after July 1 will start to show the impact of carbon taxation.

Carbon tax is set at $23 a tonne for 2012-13, but how much people will pay is set to vary from customer to customer.

The way electricity is bought and produced means that this situation cannot be avoided, the report emphasised, although attempts can be made to lower the risk.

Posted by Charlie Moore