According to Australian government, there might be possible reevaluation of the subsidy due to increasing burden.
Governor of Queensland, Anna Bligh urged Julia Gillard to reevaluate the capital investment in rooftop solar installations.Rise of electricity price may cause water price to increase because it increases the cost of water treatment and transportation.
The Queensland pricing regulator has proposed a $26 rise to the average quarterly power bill of $440 from July 1. Half of this is related to the changes to federal renewable energy target system. Power retalers are required to buy back expensive electricity given back to the grid by households with rooftop solar systems and large scale wind farms.
Proposed price increase is questioned by energy companies such as Energy Australia, AGL Energy and Origin Energy whether or not the increase is enough. They demand further price increase but pricing authority’s decision will not be finalized until the end of May.
Origin Energy in particular expressed their concern about the costs associated with the changes to federal Labor's RET not being fully recognized by the pricing authority, while AGL said the situation could cause power retailers to suffer a significant loss.
However, Origin Energy further indicated that as the solar industry continues to grow stably and cell prices continue to decrease, effects of subsidy cut will be offset.