Hidden solar subsidies paid by gas consumers

New analysis released by the Energy Networks Association (ENA) finds that gas bills for residential and commercial customers would be about $50 per year (or 5.4%) lower in 2034 than current levels if distortionary subsidies to solar technology paid for by energy customers were removed.

ENA CEO, John Bradley said many of Australia’s 4.5 million household gas users and 120,000 business gas users would be surprised to learn that Government policy on solar technology is one of the key factors determining whether their prices will rise or fall in future.

He said the analysis, by Core Energy Group, highlights the risk that government policy settings could unnecessarily distort the ability of gas to compete as a ‘fuel of choice’ for consumers..