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Solar Power in Australia: Solar power use in Australia, despite the country having a reputation for a hot dry and sunny climate that might make it ideal for utilization, provides less than one percent of electricity needs. This is mainly due to the higher cost per kW than other power sources because of the cost of solar panels. Feed-in tariffs and Mandatory renewable energy targets are designed to assist Renewable energy commercialization in Australia.
A 154 MW photovoltaic (PV) Solar power station in Victoria is planned and is expected to cost $420 million. It is expected to be the biggest and most efficient solar photovoltaic power station in the world. The power station is expected to concentrate the sun by 500 times onto the solar cells for ultra high power output. The Victorian power station will generate electricity directly from the sun to meet the annual needs of over 45,000 homes with zero greenhouse gas emissions.[1]
Incentives
Rebates
Australia has a rebate program that provides up to AU$8,000 rebates for installing solar panels on homes and community use buildings (other than schools), through the Solar Homes and Communities Plan.[2] However, on May 13, 2008, effective at midnight, this program was restricted to those with an income of less than AU$100,000.[3] Government figures estimate that this will reduce the number of solar installations by 60%, angering the solar industry and causing layoffs.[4][5]
Schools are eligible to apply for grants of up to AU$50,000 to install 2 kW solar panels and other measures through the National Solar Schools Program beginning 1 July 2008, which replaces the Green Vouchers for Schools program.[6]
Feed in tariffs
Feed in tariffs are being introduced by a number of states to increase the amount of solar PV power generated. Feed-in tariffs can be defined by a number of factors including the price paid, whether it is on a net or gross basis, the length of time for which the scheme is guaranteed, the maximum size of installation allowed to benefit, the type of customer allowed to participate. In Germany, a guaranteed PV tariff means that Germany now has the highest PV capacity per capita – at 10W for every person in Germany compared to Australia at 2.6W per capita. [7]
Mandatory Renewable Energy Targets
MRETs require generators or retailers to sell a minimum proportion of the total amount of electricity sold from renewable sources by a certain date or face financial penalties. MRETs can stimulate demand for renewable energy, but this might be from other sources apart from solar PV.
Credit due to: Wikipedia




