Under the Household Renewable Energy Scheme, to be implemented over three years starting from 1 July 2010, the tariff would be paid on excess energy fed into the electricity grid from household renewable energy systems.

WA Sustainable Energy Association (WA SEA) has condemned the decision, saying that it is a back-flip on both its 2008 state election commitment and its 2009 state budget proposal to implement a gross FiT, and that it has short-changed both householders and the renewable energy sector.

Defending the decision, Mr Collier said that the net FiT will overcome technical metering issues associated with a gross scheme, which would have seen system owners having to change existing meters.

“The cost of additional metering would have eroded some of the benefit delivered by the scheme. A net feed-in tariff will also allow the scheme to better align with systems in other jurisdictions across Australia and provide a more nationally consistent incentive to the industry,” said Mr Collier.

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WA SEA Chief Executive Dr Ray Wills said “The Barnett Government has reneged on a promise that would have provided Western Australians with the best state-based incentive in Australia to support renewable energy generation for households.

“Rather than taking a position of leadership, the Western Australian Government has decided to sheepishly follow the mediocre approach of other Australian governments – the net FiT – dressing it up as a move for ‘national consistency’.”

WA SEA added that the State Government’s decision to expend the funds retrospectively from 6 September 2008 until today is throwing the $13.5 million commitment away.

“At a time when nations around the world are moving aggressively on developing renewable energy resources, the Western Australian Government has killed what had been its most significant promise to both homeowners and to the development of the renewable energy industry in the State with Australia’s best renewable energy resources,” Dr Wills concluded.