NSW abandons FIT cut

The government of Australian state New South Wales has decided not to implement a previously proposed reduction of its feed-in tariff (FIT), sparking relief from the country’s solar sector.

It had sought to cut the FIT payment by one third to 40 cents from 60 cents and implement this reduction retroactively, but now the state government has taken a u-turn in its decision following pressure from the country’s nascent solar industry.

The UK has similarly proposed to reduce its FIT payments, but the change would not affect previously guaranteed payments under its present government.

New South Wales Premier Barry O’Farrell said this week that he will renege on introducing the rate cut retroactively, according to local reports.

Taking retrospective action calls into question the validity of government guarantees for set power rates under the FIT scheme.