SOLAR FEED-IN LAWS

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:07): I seek leave to make another ministerial statement.

Leave granted.

Mr Hamilton-Smith interjecting:

The Hon. M.D. RANN: I heard the interjection from the Leader of the Opposition. He would give into any demand. He would say anything to anyone. He does not believe in anything. He does not even remember what he said—

Mr WILLIAMS: Mr Speaker, I rise on a point of order. I thought the Premier had been given leave to make a ministerial statement, not to enter a debate.

The SPEAKER: Order! The Premier has been granted leave, but I urge members not to interject.

The Hon. M.D. RANN: It is my great pleasure to announce to the house that today a proclamation was issued following Executive Council with the Governor to commence the nation's very first laws that allow South Australian households to sell solar electricity into the state grid. The feed-in scheme will operate from 1 July 2008 and will reward households with solar electricity by paying twice the market value for excess electricity returned to the grid.

These groundbreaking new laws that recently passed through this parliament will take effect from the beginning of next month. The Electricity (Feed-In Scheme—Residential Solar Systems) Amendment Act will allow South Australian householders and small energy consumers using solar panels to be paid a premium for the surplus of electricity they generate and feed back into the electricity grid. I am advised that owners of solar panels will be rewarded with a guaranteed credit of 44¢ cents for every unit of electricity (or kilowatt hour) they feed back into the grid, which could equate to a bonus of nearly $400 annually for the average household.

Once again, South Australia is the national leader in supporting renewable energy technologies as part of our multi-pronged approach to tackling climate change. That is why we will achieve our legislated renewable energy target of 20 per cent by 2009, five years ahead of schedule, putting us in not only a national but an international leadership position. South Australia is the national leader in the market for small-scale grid connected solar power systems.

I am advised that, at the end of 2007, more than 2,000 eligible solar photovoltaic systems were operating in South Australia, with an installed capacity in excess of 3,500 kilowatts, returning more than two million kilowatts hours to the electricity grid a year. I am further told that this means that, for every 100,000 households, South Australia has three times the number of small-scale solar installations of anywhere else in Australia, which is nearly seven times the national average in terms of solar power.

With the introduction of our feed-in tariffs, which act as an incentive to install more solar panels, we expect more and more households to take up this renewable energy option. Solar panel owners will soon receive a letter through ETSA informing them of the new scheme and encouraging them to take part. As members know, the incentive will apply to small-scale grid connected photovoltaic installations and can include small businesses, schools and churches as well as households and it will be in place for 20 years. By providing this incentive, the feed-in tariff scheme is an added means of allowing people to tackle climate change in their own homes or businesses.

The federal government has made a commitment to harmonise state and territory feed-in schemes. Once again, as we have done with other things, such as our own purchase of electricity, we are setting the example to the rest of the country. I am pleased to say that, since we have announced what we are doing, already Queensland and Victoria have announced that they are adopting the model established in South Australia. To help facilitate further national consistency, I will be writing today to other premiers and chief ministers around Australia to commend the scheme to their respective jurisdictions and to offer support in implementing the incentive.

The South Australian government has been raising the profile of solar energy by progressively installing solar panels on our most prominent buildings. Two weeks ago, I announced an investment of $8 million in a one megawatt solar installation—the first megawatt solar system on any roof in Australia—at the Adelaide Showgrounds. This will be around five times the size of the next largest solar array of this kind in Australia, which is located at Melbourne's Queen Victoria markets—five times bigger than anywhere else in Australia. This follows the installation of solar panels on Adelaide Airport, the State Library, the South Australian Museum, the Art Gallery and Parliament House. The state government is also in the process of installing solar panels on 250 schools across the state.

This government is committed to supporting solar energy because it provides an opportunity for consumers to participate directly in tackling climate change. Our proposed new feed-in law was announced in September 2006 and was backed by Don Henry of the Australian Conservation Foundation and Thinker in Residence Professor Stephen Schneider. I am advised that the feed-in measures have been introduced in 16 of the 25 European states and another seven countries outside Europe, including Canada, China and Israel.

Leading by example is important, and that is why South Australia introduced the nation's first feed-in legislation. It is why South Australia passed the first climate change legislation in Australia, which at the time was only the third jurisdiction in the world to do so. It is also why we have sustainability targets in the South Australian Strategic Plan. Many of these targets are extremely ambitious and will be a challenge to achieve, but they include improving the energy efficiency of government buildings by 25 per cent by 2014.

Although the SA Government Energy Use Annual Report mentioned in the media today is yet to be seen by cabinet, the Minister for Energy informs me that we are making very good progress in achieving energy efficiencies. And just remember this: by 2014, 50 per cent of the power purchased by the South Australian government will come from renewable energy, and I challenge anyone to find any other government in the world that has a similar level percentage of purchase.

It should also be noted that we intend to achieve carbon neutral status by 2020 by purchasing accredited green power and other carbon offsets. We want to be the first carbon neutral government in the world. Achieving carbon neutrality will also include government departments working to improve their building's energy efficiencies.

Being a leader is not about setting easy targets; it is about vision. It is about setting high benchmarks and never giving up on them. That is why South Australia is a leader in tackling climate and supporting renewable energy in this nation.