The Solar Monopoly: Barriers for Small Businesses

Domestic solar energy is promoted but at the same time slowly being killed by government agencies like the CEC, Solar Victoria, grid operators, and electricity retailers. Here’s how it works in short: The CEC (Clean Energy Council) and Solar Victoria create barriers for small companies to enter the business. They’ve essentially created a monopoly—if you want your customers to access the Vic Solar rebate, you must become an “approved solar installer or retailer” and pay a fee.

The Rise of Two Types of Solar Companies

As you’d expect, most installers who actually design and install systems are excluded from this. This has led to the rise of two types of companies: those who really do the work but are forced to hire resources just to handle the paperwork, and a growing number of companies that are good with computers, have never seen an actual installation, and have no real idea how solar systems work. As a result, the real installers are paid next to nothing, while most of the profits go to the people sitting behind computers.

The Feed-In Tariff Trap: Selling Solar for Pennies

The next hit across Australia is the feed-in tariff, now as low as 3 cents per kWh. I’m sure that even those 3 cents are collected back from us in other ways. Here’s what’s happening: we invest in solar energy production, but electricity retailers successfully resell our power at good margins. There’s an argument that too much power is being generated on sunny days, and they can’t use it all, but my question is: why am I still paying peak rates when plenty of solar is being fed into the grid at 3 cents? And why do I have off-peak rates that start at 11 p.m. and finish at 6 a.m. when there’s obviously no solar available during those hours?

The Next Level: We Pay, We Give It Away, and Buy It Back at a High Price

Next, from October, any solar energy system must be controlled by grid operators or retailers, allowing them to turn it on or off whenever they want. Here’s how I see it now: if I buy a property and need power, I have to pay for the connection and equipment, like a transformer, and then it becomes the property of the grid operator. Then, I pay a daily rate just to have the connection, I pay for the electricity I use, and on top of that, if I install solar, I generate electricity, give it to the electricity retailer for free, and then buy it back at a much higher price. Isn’t that amazing?!

I understand that grid operators, electricity producers, and retailers have their own problems with the energy spikes on sunny days and various other challenges. But still, there’s a paradox here. I believe the only solar energy system that truly makes sense is an off-grid one. If there is a grid, it should be treated as a backup generator, not the main source of power.

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