Caroline Springs families will be some of the hardest hit when solar energy feed-in tariffs are cut next year, according to a western suburbs Greens MP.
Colleen Hartland, Western Metropolitan upper house member, estimates each family will lose an average of $200 a year.
The suburb is among the top five locations for solar panel installations in the state so would subsequently be “disproportionately” affected by a cut in the tariffs for energy returned to the grid.
“This minister [Environment Minister Lily D’Ambrosio has cut the solar tariff twice since she took over and it’s the people of … Melton who are suffering most from this,” Ms Hartland said.
“[She] had two chances to block cuts to solar payments but refused.
“The Greens want solar homes and businesses to be paid a fair price for the energy they produce.”
Households receiving 25 cents a kilowatt of energy exported back to the grid will be among the worst off with their payments to be cut to five cents per kilowatt from January.
Ms Hartland’s spokeswoman said: “People who currently receive 5 cents could be hit again after being cut from 8 cents to 6.5 in January 2015 and to 5 cents in January this year.
“The financial impact will vary significantly according to electricity usage but will likely be around $200 a year for an average household.”
The state government last year commissioned the Essential Services Commission (ESC) to hold an inquiry into the “true value of distributed generation”, with the findings to “inform the design of the feed-in tariff arrangements in Victoria”.
The ESC released its draft report last month, with the final report scheduled to be released in the next few months.
Ms Hartland called on Ms D’Ambrosio to set a “fair price” for solar.
The state government was contacted for comment.
